$NKLA option bears triple money

Nikola (NKLA) bears turned more big gains on downside option positions today.

on Jul. 2, Market Rebellion’s Unusual Activity programs detected the the purchase of 3,250 August $14 puts for $1.28 to $1.39 with shares at $16.55. Volume was clearly above the previous open interest of 450 contracts, indicating that this was a new position.

Those puts traded for as much as $3.92 this session, about triple their purchase prices. The stock fell 37.52% in the same time frame, a huge move but nothing like that of its options.

This marks the second winning trade in the name posted on Market Rebellion in the past week.

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.

NKLA was last lower on the day by 7.56% at $10.34 after beating bottom-line estimated in its quarterly earnings report delivered before the opening bell today.