$RYAM put buyers score

$RYAM put buyers score


Option traders are riding for big profits on downside positions in Rayonier Advanced Materials Inc (RYAM) today.

On Aug. 4Market Rebellion’s Unusual Activity Service found that 4,000 September $4 puts were bought for $0.30 to $0.39 above the existing open interest of 4 contracts with shares at $4.46.

Those puts were last marked for $0.90, a 130.77% return, while the stock fell 31.17% 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.

RYAM was last up 5.5% at $3.07.

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