Options News
Bears take a bite out of $BITO
The ProShares Bitcoin Strategy ETF (BITO) has declined sharply this month, rewarding downside put positions. On Mar. 21, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 9,000 May $23 puts as part of a bearish roll for $1.75 with shares at $25.72. Volume was well above the strike’s previous open interest of 1,261 contracts, […]
On Mar. 21, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 9,000 May $23 puts as part of a bearish roll for $1.75 with shares at $25.72. Volume was well above the strike’s previous open interest of 1,261 contracts, showing that this was fresh interest.
Those puts have traded up to $5.83 this session, over 3 times their purchase price. The stock declined 32.93% 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.
BITO was last up by 0.94% at $18.34 in midday trade.