Bulls keep betting on MGM Resorts


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For the second day in a row, call buyers are targeting MGM Resorts.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 5,000 weekly 25.50 calls expiring on April 11, most of which priced for $0.25. Volume was more than 100 times previous open interest at the strike, which indicates that new money was put to work on the long side.

Calls lock in the price where a stock can be purchased, letting investors position for a rally. They can also generate significant leverage and help investors manage how much capital they have at risk. (See our Education section.)

MGM fell 0.29 percent to $24.89 in afternoon trading, but is up 91 percent in the last year. It's benefited from strong running on strong revenue growth at its operations in the United States and China. The shares are now attempting to rebound around the same area where they consolidated in late January and early February.

Overall option volume is more than quadruple the daily average in MGM so far today, according to Heat Seeker.

Yesterday, there was bullish activity in the May 32 calls as well.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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