Option bears score in $COIN

Coinbase (COIN) fell sharply today, rewarding downside put positions opened three weeks ago.

On Apr. 21, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 4,500 Weekly $120 puts, expiring this Friday, as part of a bearish roll for $4.45 with shares at $140.15. Volume was well above the strike’s previous open interest of 68 contracts, showing that this was fresh interest.

Those puts have traded up to $69.41 today. The stock declined 63.8% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

COIN was last down by 28.39% at $52.27 during afternoon trade.