Options News
$XPEV put prices charge higher
XPeng (XPEV) shares charged lower today, and bearish option traders are making gains. On Feb. 16, Market Rebellion’s Unusual Activity Service identified the purchase of 3,500 March $35 puts for $1.15 in one print with shares at $45.11. This was clearly fresh buying, as open interest in the strike was only 1,618 contracts before the activity […]
XPeng (XPEV) shares charged lower today, and bearish option traders are making gains.
On Feb. 16, Market Rebellion’s Unusual Activity Service identified the purchase of 3,500 March $35 puts for $1.15 in one print with shares at $45.11. This was clearly fresh buying, as open interest in the strike was only 1,618 contracts before the activity appeared.
Those puts traded for as much as $8.08 this session, over 7 times their purchase price. The stock fell 39.37% 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.
XPEV was down 3.96% to close at $26.92. The Chinese electric vehicle manufacturer missed bottom line earnings estimates in its quarterly report this morning.