One investor has no faith in Boyd Gaming after a weak earnings report sank the shares last month.
optionMONSTER's tracking programs detected the sale of 1,731 September 5 calls for $1.05 against open interest of just 50 contracts. The trade accounted for almost all the activity in the casino operator so far today.
Writing calls obligates the investor to sell shares at the strike price if they're above that level on expiration. Such a transaction often reflects a belief that upside is limited or a desire to unwind a position in the equity. (See our Education section)
BYD is down 1.61 percent to $6.12 in morning trading. It fell hard on July 24 after reporting profit that was less than half what analysts had expected and revenue missed estimates. Management cited weakening business trends throughout the second quarter.
The stock has rebounded weakly since the drop but is not hitting its 30-day moving average. That could be leading some chart watchers to believe that it will now encounter resistance.
Overall option volume is triple the daily average so far today.
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