Options Trading News

September 27, 2013  Fri 11:01 AM CT

Boyd Gaming has seen its share price double this year, and traders are betting that the casino operator will hold current levels.

More than 3,000 October 14 puts have been sold today, almost all of them going for $0.50. Open interest in the strike was just 640 contracts before the trades appeared, indicating that hese are new positions.

These put sellers are looking for BYD to stay above $14 through expiration in three weeks. If the stock falls below that strike price, they will be on the hook to buy shares at that level. (See our Education section)

BYD is down 1.16 percent to $14.10 in midday trading. The stock has more than doubled since beginning 2013 at $7 but is facing a resistance level encountered in mid-May.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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