The bulls are rolling the dice on Macau casino operator Melco Crown Entertainment.
OptionMonster’s tracking systems detected the purchase of about 6,000 June 11 calls for $1.70 to $1.75 yesterday. Volume was more than 100 times open interest in the strike, indicating that this was new activity.
Calls lock in the price investors must pay to buy stock, so they can generate significant leverage if it appreciates. But they will also lose value if a rally doesn’t materialize.