Bulls roll dice on Las Vegas Sands

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One big investor expects more upside in Las Vegas Sands, even with the casino stock back to its highest levels in more than six years.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,500 January 2016 87.50 calls for $13. Equal-sized blocks were sold at the same time in the January 2016 67.50 puts for $7.70 and the January 2016 115 calls for $5. Volume was more than 14 times the previous open interest in all three strikes, indicating that new positions were initiated.

Selling upside calls and downside puts slashed the cost of the 87.50 long calls to just $0.30. The investor now stands to collect as much as $27.50 if the casino operator closes at $115 or higher by expiration two years from now. That would imply a profit of more than 9,000 percent from the shares moving just 34 percent. The trader also has downside risk because of the short puts . (See our Education section)

LVS rose 0.84 percent to $85.97 yesterday, its highest close since February 2008. The shares have been climbing steadily since August amid strong earnings and growth at its properties in Macau.

Total option volume was almost quadruple the daily average on Monday, according to the Heat Seeker.



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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: LVS

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