Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 26, 2012  Mon 12:15 PM CT

LVS: SEE CHART GET CHAIN FIND STRATEGIES
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


Related Stories

LVS

What's behind calls in Live Nation

October 6, 2014

The live-entertainment company has encountered resistance at current levels since reaching a 52-week high in early July.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER