$CZR bears trade puts for intraday profits

Option traders have traded for quick profits in downside bets on Caesars Entertainment (CZR) today.

Today on Nov. 1, Market Rebellion’s Unusual Option Activity Service found that 7,500 Weekly $41.50 puts, expiring this Friday, were bought for $0.32 to $0.57 with shares at $41.96. This was clearly fresh buying, as open interest in the contract was just 378 before the activity appeared.

Those puts have traded for as much as $1.15 this session, an 101.75% return, while the stock fell 3.24% 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.

CZR was last trading at $40.74, up 3.22% for the day.

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