Bears score again in $UBER

Option traders are turning profits on downside positions in Uber (UBER) for the second time in less than a week.

On Sept. 13, Market Rebellion’s proprietary programs identified the purchase of 5,000 March $27 puts at the same second for $1.77 with shares at $33.81. Open interest in the strike was a mere 86 contracts before the session began, showing that this was a new position.

Those puts traded for as much as $3.10 today, nearly twice their purchase price. The stock fell 14.18% in the same time period, illustrating how options can far outperform moves in their underlying shares on a relative basis.

It is the second winning downside trade in the name posted on Market Rebellion since Oct. 3.

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.

UBER is down 0.79% to $29.05 this morning. The ride-sharing service, which went public in May, has been falling since early July and hit a new low of $28.31 on Oct. 2.