Option bears take a ride with $RIVN

Option bears are being rewarded in downside option positions on Rivian Automotive Inc (RIVN) today.

Yesterday on Dec. 16, Market Rebellion’s Unusual Activity Service found that 1,800 December $103 puts, expiring today, were bought for $1.83 to $2.50 above the existing open interest of 1,036 contracts with shares at $112.10.

Those puts have traded up to $8.50 this session, over 3 times their purchase prices. The stock declined 15.25% in the same time frame, showing how quickly options can far outperform moves in their underlying shares 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.

RIVN was last lower on the day by 14.26% to $93.34.