$JETS put prices fly

Bearish option traders are collecting big profits in the US Global Jets ETF (JETS) today.

On Aug. 9, Market Rebellion’s Unusual Activity Service found that 3,500 December $19 puts were bought for $0.63 above the existing open interest of 238 contracts with shares at $20.59.

Those puts have traded for as much as $3.70 this session, a 487.3% return, while the stock fell 25.69% 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.

JETS ended the session up 0.4% at $15.19 today.