$QQQ put buyers score

Option traders posted big gains on downside positions in the tech-heavy PowerShares QQQ Fund (QQQ) today.

On Feb. 24, Market Rebellion’s Unusual Activity programs detected the the purchase of 12,871 May $322 puts as part of a bearish roll for $12.39 above the existing open interest of 36, with shares at $340.27.

Those puts traded up to $26.17 today, over 2 times their purchase prices. The stock fell 12.6% 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.

QQQ ended the day at $297.15, down 3.91% on the session. The exchange-traded fund reflects the Nasdaq 100 Index.