Options Action: Gaming A Vegas Player

Monday, 5 Apr 2010 | 5:32 PM ET

Considering the casino space is ripe with speculative takeover talk, how should you position yourself?

With all the momentum in the space, Mike Khouw of Cantor Fitzgerald suggests using options.

Here's his trade in IGT .

IGT options chain - stock at $19.40
Buyer of July 21 call for $0.75
Seller of July 23 call for $0.25

How Khouw’s Trade Makes Money
Profit capped at $23
Profit above $21.50
Losses below $21.50

Find out more about this trade. Watch the video now!

Options Action
Using options to game casino stocks, with Mike Khouw, Cantor Fitzgerald.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

CNBC.com with wires

  Price   Change %Change


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report