Options Trading News

August 13, 2013  Tue 9:03 AM CT

Call selling dominates today's option trade in Melco Crown Entertainment with shares near highs.

optionMONSTER systems show that a trader sold 3,800 January 33 calls for $0.55. The previous open interest had been just 173 contracts, so this is a new position.

These calls could have been sold naked with an initial bearish bias, especially given how far out of the money and time it is. Alternatively they could also have been sold against long shares in a covered-call position, which would be bullish but only up to $33. (See our Education section)

MPEL is up fractionally this morning to $26.37. The casino operator has been trending higher from below $22 in the last month. It has been trading in a very tight range in the last week or so and posted a closing high of $26.40.
Share this article with your friends

Related Stories


Short-term bets on Melco Crown

November 9, 2015

The company, which has fallen along with other casino operators because of weakness in Macau, reported mixed quarterly results last Thursday.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »