Option bears take a bite out of $AAPL

Option traders are scoring big profits on downside positions opened in Apple (AAPL) this month.

On May 2, Market Rebellion’s Unusual Activity Service found that 6,380 May $152.50 puts, expiring tomorrow, were bought for $4.35 as part of a bearish roll with shares at $155.85. This was clearly fresh buying, as open interest in the strike was just 4,505 contracts before the activity appeared.

Those puts have traded up to $15.66 this session, over 3 times their purchase prices. The stock declined 12.24% 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.

AAPL was last lower on the day by 2.73% to $136.97.