Option bears score quick in $NVDA

Bearish option traders are racking up fast profits today in Nvidia (NVDA).

This morning, Jul. 15, Market Rebellion’s Unusual Activity programs flagged the the purchase of 5,900 July $780 puts, expiring tomorrow, for $3.81 to $9.30 with shares at $792.08. Volume was clearly above the previous open interest of 73contracts, indicating that this was a new position.

Those puts traded for as much as $26.09 this session, at least 2.5 times their purchase prices. The stock fell 4.67% 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.

NVDA ended the session at $758.65, down 4.41% on the day.