$ALB put prices rise

$ALB put prices rise


Option traders are scoring in bearish positions opened on Albemarle (ALB) on Monday.

On Apr. 3Market Rebellion’s Unusual Option Activity Service found that 3,000 Weekly $215 puts, expiring tomorrow, were bought for $1.85 to $2.00 with shares at $218.88. This was clearly fresh buying, as the open interest in the contract before the activity appeared was just 32.

Those puts have traded up to $20.65 this session, a 932.5% return, while the stock declined 11.24% 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.

ALB was down at the close by 6.10% to $196.71.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!