MGM Resorts has been trying to rebound off its 2012 low this week, and one trader is making a long-term bullish bet on the casino operator.
optionMONSTER's Heat Seeker system detected the purchase of 11,250 January 2014 17 calls in a single print for $0.63. Open interest in the strike was 3,071 at the start of the day, so this is clearly a new position.
For those long calls to turn a profit, MGM would need to gain some 75 percent from today's levels to $17 or more. (See our Education section)
MGM is down 2.42 percent to $10.07 in afternoon trading. The stock has been struggling to recover since hitting $9.72 on Monday, its lowest level so far this year.
The company is scheduled to report earnings on Aug. 7.
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MGM Resorts draws downside wager
April 22, 2013
The casino operator closed Friday just below its 100-day moving average and at the low end of a tight range in place since the beginning of the year.
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