Options News
$INDA put prices rise overnight
Bearish iShares MSCI India ETF (INDA) option traders who opened downside positions yesterday are already seeing gains. On Jan. 26, Market Rebellion’s Unusual Option Activity Service found that 3,000 February $42 puts were bought for $0.75 to $0.77 above the existing open interest of 380 contracts with shares at $42.29. Those puts traded up to $1.45 today, […]
Bearish iShares MSCI India ETF (INDA) option traders who opened downside positions yesterday are already seeing gains.
On Jan. 26, Market Rebellion’s Unusual Option Activity Service found that 3,000 February $42 puts were bought for $0.75 to $0.77 above the existing open interest of 380 contracts with shares at $42.29.
Those puts traded up to $1.45 today, nearly 2 times their purchase prices. The stock declined 3.36% 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.
INDA was last down 2.49% at $40.88.
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