$ATUS put buyers score at lows

Bearish option traders’ downside put positions are scoring today in Altice USA Inc (ATUS) as shares trade at lows.

On Jan. 18, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 4,970 February $14 puts, expiring tomorrow, for $0.90 as part of a bearish spread with shares at $15.03. Volume was well above the strike’s previous open interest of 45 contracts, showing that this was fresh interest.

Those puts have traded up to $2.85 today, more than 3 times their purchase price. The stock declined 25.55% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

ATUS was last down 18.26% to $11.77 in late session trade.