Option bears drive with gains in $FSR

Bearish option traders are driving big gains in Fisker Inc (FSR) today.

On Apr. 14, Market Rebellion’s Unusual Option Activity Service found that 6,000 March $4.50 puts were bought for $0.05 above the existing open interest of 492, with shares at $5.33.

Those puts have traded up to $0.16 this session, a 220% return, while the stock declined 12.95% 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.

FSR ended the session down 1.8% at $4.92.