$NFLX option bears stream fast profits

Bearish option positions opened in Netflix (NFLX) yesterday are streaming higher today as shares fall.

On Sep. 14, Market Rebellion’s Unusual Activity Service found that 11,000 September $400 puts were bought for $1.68 to $3.44 above the existing open interest of 7,795 contracts with shares at $408.84.

Those puts have traded for as much as $5.15 this session, a 49.71% return, while the stock fell 3.38% 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.

NFLX was last down on the session by 0.48% at $398.57.