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