Gains for $EVLV put buyers

Gains for $EVLV put buyers


Bearish option positions in Evolv Technologies Holdings Inc (EVLV) are trading higher today as shares fall.

On Sep. 13Market Rebellion’s Unusual Activity Service found that 10,000 October $6 puts were bought for $0.50 to $0.55 above the existing open interest of 142 contracts with shares at $6.37.

Those puts have traded for as much as $1.30 this session, a 136.36% return, while the stock fell 25.43% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

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.

EVLV was last down on the session by 3.95% at $4.74.

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