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.
Share this article with your friends

Invest Like a Monster - San Antonio: October 9-10


The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »