$NYCB option bears bank big profits

$NYCB option bears bank big profits

by

Bearish option traders are banking profits in downside positions on New York Community Bancorp, Inc. (NYCB).

On Feb. 6Market Rebellion’s Unusual Option Activity Service found that 3,000 March $4 puts were bought for $0.70 with shares at $4.69.

Those puts have traded up to $2.22 this session, a 217.14% return, while the stock declined 59.49% in the same time period, a large 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.

NYCB was last down 42.24% at $1.86.

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!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!