$HZNP put buyers mark gains

Bearish option traders are marking gains in downside positions on Horizon Therapeutics PLC (HZNP).

On Mar. 22, Market Rebellion’s Unusual Option Activity Service found that 2,500 June $100 puts were bought for $2.90 as part of a bearish spread above the existing open interest of 38 contracts with shares at $108.19.

Those puts traded up to $8.35 this session, a 187.93% return, while the stock declined 12.31% 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.

HZNP was down 14.17% to close at $96.34.