$MPW put prices on the rise

$MPW put prices on the rise


Option traders who opened upside positions in Medical Properties Trust Inc (MPW) last month are now seeing big rewards.

On Jul. 28Market Rebellion’s Unusual Activity Service found that 12,900 August $9.50 puts were bought for $0.17 to $0.24 above the existing open interest of 914 contracts with shares at $10.39.

Those puts have traded for as much as $3.09 this session, a 1,187.50% return, while the stock fell 38.02% 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.

MPW was last down 8.2% at $6.88.

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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