Bears score gains in $W

Bearish option traders have doubled their money on put positions in Wayfair (W).

On Apr. 21, Market Rebellion’s Unusual Activity programs found the the purchase of 2,400 May $80 puts for $5.40 as part of a bearish roll above the existing open interest of 2,198 with shares at $93.72.

Those puts have traded for as much as $10.80 this session, 2 times their purchase price. The stock fell 16.5% 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.

W was last down 4.91% to $79.81today.