Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 7, 2013  Fri 4:14 AM CT

MPEL: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER