Options News
$AMTD bears double their money
Option traders doubled their money on bearish option positions in TD Ameritrade opened just one session before. On July 3, Investitute’s tracking systems showed that 3,000 Weekly $55 puts expiring on July 13 were purchased for $0.80 to $0.86 with shares at $55.34. Those puts traded for $1.84 today, more than double their initial purchase price. The […]
Option traders doubled their money on bearish option positions in TD Ameritrade opened just one session before.
On July 3, Investitute’s tracking systems showed that 3,000 Weekly $55 puts expiring on July 13 were purchased for $0.80 to $0.86 with shares at $55.34.
Those puts traded for $1.84 today, more than double their initial purchase price. The stock fell 3.47% at the same time, showing how quickly options can far outperform their underlying shares.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.
AMTD was down 0.87% to $53.52 today.