$T put prices double

Bearish option traders are dialing up profits in AT&T (T) today.

On Oct. 12, Market Rebellion’s Unusual Activity scanners identified the purchase of 14,624 Weekly $28 puts, expiring on Oct. 30, for $0.59 as part of a bearish roll with shares at $28.11. This was clearly a new position, as volume was well above the strike’s previous open interest of 1,686 contracts.

Those puts have changed hands for as much as $0.94 today, nearly double their purchase price. The stock declined 3.52% in the same time frame, underscoring how quickly options can far outperform 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.

T is down 1.78% to $27.32 this afternoon. The telecom giant’s price target was lowered this morning to $3o from $32 at RBC Capital.