$UBER bears turn quick gains

Option traders have more than doubled their money on downside positions opened in Uber (UBER) only a week ago.

On Sept. 26, Market Rebellion’s proprietary programs identified the purchase of 10,000 November $25 puts in one print for $0.45 with shares at $32.02. Open interest in the strike was a mere 487 contracts before the session began, showing that this was a new position.

Those puts were traded for as much as $1.02 today, more than twice their purchase price. The stock fell 9.65% in the same time frame, showing how quickly options can far outperform moves in 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.

UBER fell to $28.52 this morning but rebounded with the broader market to trade at $29.45 this afternoon, up 1.55% on the session. The ride-sharing service, which went public in May, has been falling since early July and hit a new low of $28.31 yesterday.