$V put prices double in two days

Bearish option traders turned quick profits in Visa today.

On Monday, Investitute’s tracking systems found that 3,000 Weekly $115 puts expiring tomorrow afternoon were purchased for $0.32 with shares at $118.75. This was clearly fresh buying, as volume was well above the strike’s open interest of 1,196 contracts.

Those puts traded as high as $0.74 today, more than twice their purchase price. The stock fell 2.2% in the same time frame, showing how quickly options can far outpace 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.

V was down 0.35% to $116.99 today. Shares of the credit-card company broke down from a tight range about $122 last week.