Options Trading News

August 23, 2013  Fri 9:34 AM CT

Long-term call selling tops today's option trade in MGM Resorts as shares climb to their highest levels in five years.

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.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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