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June 26, 2013  Wed 10:48 AM CT

PENN: SEE CHART GET CHAIN FIND STRATEGIES
Penn National Gaming is trying to bounce, but one investor is losing patience in the name.

optionMONSTER's Depth Charge tracking program detected the purchase of 2,500 August 45 puts for $0.55 and the sale of an equal number of August 50 calls for $3.30. There was no open interest at either strike before the transaction appeared, indicating that new positions were initiated.

The trader probably owns shares in the casino company, which focuses on slot-machine entertainment. The puts ensure that he or she will receive at least $45 for the stock, while writing the calls will force the trader to sell for $50.  

PENN is up fractionally at $51.63 near midday trading. It rallied more than 50 percent between November and April before skidding down to its 200-day moving average. The stock has been rebounding more recently, but today's credit spread suggests that the investor sees little upside and wants to exit the name. (See our Education section for more other techniques to help you manage positions.)

Almost 5,200 PENN options have traded so far, compared with a daily average of 94 contracts for the last month.
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