$GOOG put buyers score fast profits

Option traders that searched for profits in Alphabet Inc Class C (GOOG) puts are finding them today as shares continue their retreat.

Yesterday on Nov. 2Market Rebellion’s Unusual Activity Service found that 2,800 Weekly $86 puts, expiring tomorrow, Nov. 4, were bought for $0.23 to $0.27 with shares at $90.65. This was clearly fresh buying, as open interest in the strike was just 957 contracts before the activity appeared.

Those puts have traded for as $2.60 so far today, more than 9.5 times times their purchase price. The stock fell 3.23% in the same time frame, a huge move but still 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.

GOOG was last down this session by 4.01% at $83.58.

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