Quick profits for $AMZN put buyers

This morning on Jan. 2, Market Rebellion’s Unusual Option Activity Service found that 15,000 Weekly $148 puts, expiring Jan. 5, were bought for $0.43 to $0.62 with shares at $150.68. This was clearly fresh buying, as open interest in the contract was just 2,837 before the activity appeared.

Those puts have traded for as much as $1.35 this session, a 117.74% return, while the stock fell 1.51% 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.