One investor apparently believes that Caesars Entertainment is on solid ground ahead of tonight's earnings report.
optionMONSTER's tracking programs detected the sale of 3,000 August 7.50 puts for $0.30 and $0.35 against open interest of 979 contracts. The trade accounted for almost all of today's option activity in the casino operator so far today.
CZR is down 0.36 percent to $8.29 this morning. It has traded between $8.08 and $17.90 since going public in February and has spent the last month holding the lower end of that range.
Today's put seller is now on the hook to buy shares for $7.50 should they close below that level on expiration. If they remain above it, he or she will keep the premium earned from the put sale as the contracts are rendered worthless.
Given that quarterly results come out after the bell today, he or she is essentially betting that the numbers won't be bad enough to cause a selloff in the shares. They don't necessarily expect a rally.
Overall option volume in CZR is 14 times greater than average so far today.
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