$COIN put buyers score overnight

$COIN put buyers score overnight


Coinbase (COIN) is trading lower today, rewarding downside put positions opened only yesterday.

On Jun. 5Market Rebellion’s Unusual Option Activity Service found that 6,000 Weekly $50 puts, expiring this Friday, were bought for $0.16 to $0.18 with shares at $61.76. Volume was well above the strike’s previous open interest of 3,997 contracts, showing that this was fresh interest.

Those puts traded up to $5.65 this session, a 3,038.89% return, while the stock declined 24.5% 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.

COIN was last down by 15.25% at $49.75 in morning trade.

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!

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