$TTD put prices rise

Option traders are scoring gains today on downside positions opened in Trade Desk Inc (TTD) last week.

On Nov. 1, Market Rebellion’s Unusual Option Activity Service found that 8,000 November $65 puts were bought for $2.82 to $2.88 with shares at $69.80. This was clearly fresh buying, as open interest in the contract was just 417 before the activity appeared.

Those puts have traded for as much as $5.20 this session, an 80.56% return, while the stock fell 13.41% 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.

TTD is down 18.14% to $62.88 in midday trade.

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