$INOD put buyers score

$INOD put buyers score

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Innodata Inc (INOD) is trading lower this session, delivering profits to bearish option positions.

On Aug. 30Market Rebellion’s Unusual Activity Service found that 4,700 October $12.50 puts were bought for $0.90 to $1.05 above the existing open interest of 1,929 contracts with shares at $15.28.

Those puts have traded for as much as $5.90 this session, a 461.90% return, while the stock fell 55.24% 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.

INOD was last down on the session by 7.07% at $6.84.

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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