On Aug. 30, Market 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.
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