$JETS put prices take off

$JETS put prices take off

by

Bearish option traders are collecting big profits in the US Global Jets ETF (JETS) today.

On Jul. 20Market Rebellion’s Unusual Activity Service found that 34,000 September $21 puts were bought for $0.52 as part of a bearish roll above the existing open interest of 1,252 contracts with shares at $21.81.

Those puts have traded for as much as $1.09 this session, a 109.62% return, while the stock fell 7.2% 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.

JETS was last down 2.31% at $20.28 today.

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