Market News

June 7, 2013  Fri 4:14 AM CT

Melco Crown Entertainment has pulled back from all-time highs in the last month, but a large trade apparently believes that the slide is ending.

optionMONSTER's tracking systems detected the sale of 10,000 July 22 puts for $0.75 at the same second yesterday. This is clearly a new position, as the strike's open interest was just 496 contracts before the trade appeared.

The put seller is betting that MPEL will stay above the $22 strike price through expiration in mid-July. If the stock falls below that level, the trader will face the obligation to buy shares at an effective price of $21.25 once the $0.75 credit from the put sale is included. (See our Education section)

MPEL rose 1.49 percent yesterday to $23.19. The Macau-based casino operator has been trending lower since hitting resistance at lifetime highs around $25 in early May.

Total option volume in the name was 13,330 contracts yesterday, triple its daily average for the last month.
News Archives
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »