So far 2019 has been nothing short of a roller coaster for casino stocks.
Wynn Resorts, Las Vegas Sands and MGM are all up double digits on the year, but the way these stocks have traded has been anything but predictable. These companies all rely on Macao gaming traffic for a significant portion of their revenue, making them especially vulnerable to ongoing trade war tensions and other global growth risks.
Despite the turbulence, one intrepid options trader is wagering a huge chunk of cash that one of these stocks is about to hit the jackpot.
That trader chose to put their chips on Las Vegas Sands, which has actually lagged MGM and Wynn Resorts this year. If the trader is right, it could be about to snap out of its slump and lead the group higher.
"Very early today, we saw about four times the average daily call volume, and that volume was mostly the result of one very large trade," Optimize Advisors President Michael Khouw said Tuesday evening on CNBC's "Fast Money."
"Somebody paid $3.20 for 13,000 of those [January 60-calls]. That represents 1.3 million shares of Las Vegas Sands."
Since each options contract is worth 100 shares of stock, that means this trader is betting more than $4 million that Las Vegas Sands will soar at least 8.5% to the break-even price of $63.20 per share by January expiration.
"This is somebody who is betting on a pretty good bounce after we've seen a little bit of weakness in Las Vegas Sands recently," Khouw said.
Las Vegas Sands was slightly lower Wednesday.