$BLL option bears can big gains

Bearish option traders are canning big gains in Ball Corporation (BLL) today.

On Mar. 29, Market Rebellion’s Unusual Activity programs detected the the purchase of 2,500 May $87.50 puts for $3.00 above the existing open interest of 26, with shares at $89.59.

Those puts were last marked for $10.30, over 3 times their purchase prices. The stock fell 14.43% 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.

BLL was last lower on the day by 7.88% to $76.66.