Options Trading News

November 26, 2012  Mon 12:15 PM CT

One investor is keeping the faith in Las Vegas Sands.

optionMONSTER's Heat Seeker trade scanner detected the purchase of 10,130 March 50 calls for $1.07. A matching number of December 48 calls were sold at the same time for $0.16 with volume below previous open interest. This suggests that an existing position was closed in the December 48s and rolled to the March 50s.

The investor paid $0.91 and now has an additional three months for the casino operator to rally. If the trade hadn't been adjusted, he or she would see those December long calls lose value at an accelerating pace as expiration approaches four weeks from now. (See our Education section)

LVS is off .38 percent to $44.01 in afternoon trading but is up almost 8 percent since the middle of the month, when it bounced at long-term support around $40. The company's last two earnings reports have missed estimates amid rising costs at its Chinese operations.

Total option volume is triple the daily average so far today, with calls outnumbering puts by 4 to 1.
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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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