$WW put prices spike intraday

$WW put prices spike intraday


Option traders are turning big profits on downside positions in Weight Watchers (WW) today.

Today on Jan. 4Market Rebellion’s Unusual Activity Service found that 3,800 Weekly $7 puts, expiring Jan. 5, were bought for $0.20 to $0.30 with shares at $7.26. This was clearly fresh buying, as open interest in the strike was just 171 contracts before the activity appeared.

Those puts have traded for as much as $0.65 this session, a 116.67% return, while the stock fell 11.71% 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.

WW was last down 12.96% at $6.65 today.

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