Shares of Las Vegas Sands have risen roughly 65 percent in the last week, and options traders apparently see lots of room for more upside.
LVS stock, which closed yesterday (Wednesday) up 2.64 percent to $2.33, was above $9 at the beginning of 2009 before breaking back down. The casino operator's stock dropped below $3 in mid-February and has not been able to climb back above that level, reaching as low as $1.40 on March 12. (Ticker above reflects current share price.)
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The options action is in the April 2.50 and April 5 calls, according to OptionMonster's tracking systems. The main trade is a bull call spread, with one block of 9,900 April 2.50 calls bought for $0.50 and the same number of the April 5 calls sold for $0.10. This makes for a net debit of $0.40, and therefore the trade will profit if LVS is above $2.90 at expiration.
The implied volatility for LVS sits at 230 percent, near the highs. The historical volatility is up to 206 percent, up from 150 percent three weeks ago but still well below the highs of 300 percent hit back in November.
Rival Casino Resorts:
Isle of Capri Casinos
Trump Entertainment Resorts
Chris McKhann is an analyst and writer for OptionMonster.