Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 25, 2013  Fri 11:23 AM CT

MGM: SEE CHART GET CHAIN FIND STRATEGIES
An enormous trade is looking for volatility rise in shares of MGM Resorts.

More than 54,000 MGM options have traded today, already more than quadruple its full-sessioni average in the last month. Most of that volume is in one print in the February 13 puts.

A trader bought 40,000 of those contracts for the ask price of $0.37, according to optionMONSTER systems. The volume was about 4 times the previous open interest in the strike, so this is a new position.

Less than a minute later, a block of 1.88 million shares of MGM was bought for $13.0133. The combination of stock and options creates an overall delta-neutral position that is looking for a break from the stock's low volatility of late. The current 10-day historical volatility for MGM is 20 percent, near 52-week lows. (See our Education section)

MGM is flat on the session at $12.97 this afternoon. Shares of the casino operator have traded in an increasingly tight range around this $13 level in the last couple of weeks. The stock was down near $9 in mid-November.
Share this article with your friends


Related Stories

MGM

Long-term puts hit casino names

August 27, 2014

Traders are buying 2016 puts in MGM Resorts and Boyd Gaming today, either as outright bearish plays or hedging on long positions.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER