$VIAC bears binge more profits

ViacomCBS (VIAC) shares streamed lower again today, and bearish option traders are binging on profits.

On Mar. 23, Market Rebellion’s Unusual Activity Service identified the purchase of 3,500 May $85 puts for $6.30 as part of a bearish spread with shares at $93.05. This was clearly fresh buying, as open interest in the strike was only 646 contracts before 70.10activity appeared.

Those puts traded for as much as $21.70 this session, 3 times their purchase price. The stock fell 30.32% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

This marks the second winning trade in the name posted on Market Rebellion in as many sessions.

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.

VIAC was down a second day, by 5.35% to close at $66.35.