$ARKG put prices double

Bearish option traders are riding big gains in the ARK Genomic Revolution ETF (ARKG).

On Mar. 11, Market Rebellion’s Unusual Activity programs detected the the purchase of 5,250 March $44.50 puts for $1.87 to $2.03 as part of a bearish roll above the existing open interest of 4 with shares at $44.02.

Those puts traded for $5.70 this session, over 2.5 times their purchase prices. The stock fell 11.72% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

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.

ARKG was higher on the day by 3.41% to close at $39.45.