Bears double money in $BKE

Downside option positions turned large profits as The Buckle fell today.

Back on June 25, Investitute’s proprietary programs flagged the purchase of 2,000 December $30 puts as part of a bearish roll with shares at $27.85. This was clearly a new position, as open interest in the strike was a mere 2 contracts before the trade

Those puts were marked at $10.50 this afternoon, more than twice their purchase price. The stock plunged 29.76% in the same time period, a huge move but still far below that of their 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.

BKE dropped 5.65% to $19.70 today. The apparel retailer’s quarterly results missed estimates after the market closed yesterday.