Bears stream more gains in $VIAC

ViacomCBS (VIAC) shares are streaming lower for a fourth day today, and bearish option traders are streaming profits.

On Feb. 23, Market Rebellion’s Unusual Activity Service identified the purchase of 4,250 April $65 puts for $6.88 as part of a bearish roll with shares at $64.36. This was clearly fresh buying, as open interest in the strike was only 192 contracts before the activity appeared.

Those puts have traded for as much as $17.35 this session, 2.5 times their purchase price. The stock fell 25.08% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

This marks the third winning trade in the name posted on Market Rebellion in as many sessions.

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.

VIAC was last down by 25.06% at $49.72.