$WOOF put buyers score on downside

$WOOF put buyers score on downside


Bearish option traders are marking gains in downside positions on Petco Health and Wellness Company Inc (WOOF).

On May 22Market Rebellion’s Unusual Option Activity Service found that 3,500 June $10 puts were bought for $0.55 to $0.60 above the existing open interest of 859 contracts with shares at $10.13.

Those puts traded up to $2.42 this session, a 303.33% return, while the stock declined 25.37% 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.

WOOF was last down 17.94% at $8.35.

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