Bulls Roll the Dice on MGM Resorts
Investors rolled the dice in MGM Resorts International yesterday, betting on a strong earnings report.
OptionMonster's tracking programs detected the purchase of about 11,000 November 11 calls, including a single print of 9,950 that went for $0.30. Volume was almost twice previous open interest at the strike. The November 10s and the December 10s were active as well.
Calls lock in the price investors must pay to buy stock, so the options can generate some nice leverage in the event of a rally. If there is no move in the share price, however, those November 11s will expire worthless.
MGM shares fell 0.93 percent to $10.64 yesterday, continuing to stagger in a range that has been in place for years.
Yesterday's call buyers could be looking for a rally around the next earnings report on Oct. 31. Rival casino company Wynn Resorts popped yesterday on strong results after the close.
Total option volume was triple the daily average yesterday, with calls outnumbering puts by a bullish 20-to-1 ratio.
—By CNBC Contributor David Russell
Additional News: MGM China Shares Jump 5% After New Casino Gets Green
Additional Views: Bulls Hunt for Bargains in Dollar Tree: Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in MGM.
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