$BKKT puts double overnight

Bearish option traders have run up fast gains in Bakkt Holdings Inc (BKKT) today.

Just minutes before the closing bell yesterday, May. 4, Market Rebellion’s Unusual Activity programs detected the the purchase of 5,000 Weekly $4 puts, expiring this Friday, for $0.19 to $0.20, above the existing open interest of 285, with shares at $3.97.

Those puts have traded for as much as $0.46 so far this session, over 2 times their purchase prices. The stock fell 10.08% 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.

BKKT was last lower on the day by 9.51% to $3.57.