$TSLA bears score profits

On Apr. 17, Market Rebellion’s Unusual Option Activity Service found that 10,000 Weekly $170 puts, expiring Apr. 28, were bought for $3.10 as part of a bearish roll above the existing open interest of 3,842, with shares at $185.60.

Those puts have traded up to $11.21 this session, a 261.61% return, while the stock declined 13.39% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.