Calls sold in MGM Resorts at highs
Chris McKhann | [email protected]
The January 2015 22 calls dominate the action in the casino operator this morning. optionMONSTER systems detected the sale of 6,250 of those calls for $1.61 against previous open interest of 1,449 contracts at that strike, clearly showing that this is a new position.
The calls could have been sold naked with an initial bearish bias, but they wree more likely traded against long shares in a covered-call position. The latter would be bullish up to, but not beyond, that $22 price strike price.
MGM is up 0.28 percent to $17.87, trading at its highest level since 2008. Shares bounced off support at $9 in the middle of November.