Option bears score again in $COIN

Coinbase (COIN) is falling sharply again today, rewarding downside put positions opened only yesterday.

On May 11, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 15,000 Weekly $55 puts, expiring this Friday, as part of a bearish roll for $3.40 to $3.50 with shares at $56.94. Volume was well above the strike’s previous open interest of 7,223 contracts, showing that this was fresh interest.

Those puts have traded up to $14.25 this morning. The stock declined 27.99% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name to be posted on Market Rebellion in as many sessions.

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.

COIN was last down by 18.22% at $43.93 in morning trade.