$CMCSA bears are streaming big gains

Option traders cashed in big profits on downside positions in Comcast (CMCSA) today.

Friday, Jan. 21, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 11,900 Weekly $50 puts, expiring this Friday, for $0.88 to $1.35 with shares at $50.64. Volume was well above the strike’s previous open interest of 342 contracts, showing that this was fresh interest.

Those puts have traded up to $2.68 today, nearly double their purchase prices. The stock declined 3.38% 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.

CMCSA fell to $48.78 this morning and was last up by 0.02% trading at $49.74.