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