$GOOGL put buyers score fast profits

Option traders that searched for fast profits in Alphabet Inc Class A (GOOGL) puts are finding them today.

Just this morning on Dec. 1Market Rebellion’s Unusual Activity Service found that 8,500 Weekly $100 puts, expiring tomorrow, Dec. 2, were bought for $0.44 to $0.55 with shares at $101.19. This was clearly fresh buying, as open interest in the strike was just 979 contracts before the activity appeared.

Those puts have traded for as much as $0.85 so far today, over 50% more than their purchase prices. The stock fell 0.92% in the same time frame, a quick 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.

GOOGL was last down this session by 0.26% at $100.73.

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