$CHPT put buyers triple money

Option traders are turning big gains on downside option positions that were opened in ChargePoint Holdings Inc (CHPT) just one session ago.

On Dec. 16Market Rebellion’s Unusual Option Activity Service found that 15,000 Weekly $10.50 puts, expiring this Friday, were bought for $0.34 as part of a bearish spread above the existing open interest of 394 contracts with shares at $10.72.

Those puts have traded up to $1.10 so far today, over 3 times their purchase price. The stock declined 12.22% 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.

CHPT was last down 8.23% to $9.59 in midday trade.

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