$RILY bears score on downside

Bearish option positions in B Riley Financial Inc (RILY) are streaming higher today as shares fall.

On Aug. 25, Market Rebellion’s Unusual Activity Service found that 5,000 October $45 puts were bought for $3.85 above the existing open interest of 53 contracts with shares at $44.57.

Those puts have traded for as much as $6.20 this session, a 61.05% return, while the stock fell 11.55% 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.

RILY was last down on the session by 6.52% at $40.03.