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PayPal Inc. (PYPL) - Get PayPal Holdings Inc Report bears feasted this week as a sharp tech sector selloff drove put option prices through the roof.

On October 1, Investitute's tracking systems showed that 6,500 Weekly $86 puts expiring on October 12 were bought from $0.61 to $0.67 with shares traded at $87.98 to $88.09 at the same time. The volume was well above the open interest of 189 contracts, indicating this was a new position.

These put buyers may have seen a reason to hedge their portfolio which may have contained PayPal shares, or perhaps they just wanted to express an opinion that the high-beta stock had perceived downside.

Those puts traded for $9.12 on Wednesday, October 10, more than 14 times their average purchase price. The stock dropped 12.66% in the same time frame, showing how options can quickly outperform moves in their underlying shares.

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Long puts lock in the investor's selling price, no matter how far it might drop, gaining value in a selloff and the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

PayPal fell 5.72% to close at $75.45 Wednesday. The electronic-payment service, which was trading at all-time highs only a few weeks ago, has fallen sharply since breaking below its 50-day moving average at the end of September.