$MTCH bears quadruple money

Bearish option traders are collecting major profits in Match (MTCH) puts today.

On Aug. 19, Market Rebellion’s tracking systems identified the purchase of 7,500 September $80 puts for $1.20, as part of a complex bearish spread, with shares at $81.57. These were clearly new positions, as volume dwarfed the strike’s open interest of 676 contracts.

Those puts traded up to $5.20 this morning, more than 4 times their purchase price. The stock fell 7.74% at the same time, showing how quickly options can far outpace their underlying shares.

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.

MTCH is currently higher on the session by 0.3% at $75.77, though off its opening highs. The dating-service operator saw its share price slashed after Facebook (FB) launched Facebook Dating on Sept. 5.