Option bears collect gains in $BILL

Option bears collect gains in $BILL

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Option traders are scoring gains today on downside positions opened in BILL Holdings Inc (TTD) yesterday.

On Nov. 2Market Rebellion’s Unusual Option Activity Service found that 3,100 November $75 puts were bought for $1.69 to $1.85 with shares at $89.00. This was clearly fresh buying, as open interest in the contract was just 282 before the activity appeared.

Those puts have traded for as much as $16.10 this session, an 770.27% return, while the stock fell 33.81% 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.

BILL is down 27.71% to $64.68 in midday trade.

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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