Puts turn quick profits in $CC

Bearish traders nearly tripled their money in Chemours today ahead of quarterly results this week.

On Oct. 9, Investitute’s proprietary programs found that 15,946 Weekly $35 puts expiring this Friday were purchased for $1.25 to $1.30 as part of a bearish roll with shares at $37. This was clearly a new position, as open interest in the strike was a mere 58 positions before that session began.

Those calls traded up to $3.60 just before today’s closing bell, nearly 3 times their purchase prices. The stock fell 12.38% in the same time frame, showing how options can far outperform moves in their underlying shares.

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.

CC was down 2.47% today to close at $32.41. The chemical company is scheduled to report earnings on Nov. 1 after the market closes.