Options News
$CS option bears double money
Bearish option traders are posting big profits in Credit Suisse Group AG (CS) today. On May 19, Market Rebellion’s Unusual Option Activity Service found that 7,480 September $7 puts were bought for $0.80 as part of a bearish roll with shares at $6.73. This was clearly fresh buying, as open interest in the contract was just […]
Bearish option traders are posting big profits in Credit Suisse Group AG (CS) today.
On May 19, Market Rebellion’s Unusual Option Activity Service found that 7,480 September $7 puts were bought for $0.80 as part of a bearish roll with shares at $6.73. This was clearly fresh buying, as open interest in the contract was just 4,208 before the activity appeared.
Those puts have traded for as much as $1.62 so far this session, more than 2 times their purchase price. The stock fell 20.21% 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.
CS was last at $5.29, down 5.87% for the day.
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