Options News
$CS put prices rise
Bearish option traders are posting big profits in Credit Suisse Group AG (CS) today. On Mar. 17, Market Rebellion’s Unusual Option Activity Service found that 20,700 Weekly $2 puts, expiring this Friday, were bought for $0.56 to $0.66 with shares at $2.07. This was clearly fresh buying, as open interest in the contract was just 1,774 […]
Bearish option traders are posting big profits in Credit Suisse Group AG (CS) today.
On Mar. 17, Market Rebellion’s Unusual Option Activity Service found that 20,700 Weekly $2 puts, expiring this Friday, were bought for $0.56 to $0.66 with shares at $2.07. This was clearly fresh buying, as open interest in the contract was just 1,774 before the activity appeared.
Those puts traded for as much as $1.80 this session, more than 2.5 times their purchase prices. The stock fell 56.04% 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 $0.96, down 52.40% for the day.
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