Melco Crown Entertainment has been a monstrous run, and traders
are upping the ante.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 11,300 April 18 calls for $1.42 and the sale of 9,525 January 17
calls for $0.87. Volume was below open interest in the January
contracts, indicating that an existing long position was closed and
rolled to the higher strike.
The transaction cost about $776,000 and increases the investor's
to the high-flying Chinese casino stock, which is already up 17
percent in the last month. Not only did this trader increase the
number of contracts owned, but he or she also put more money on the
table--the opposite of quitting when ahead.
MPEL rose 3.23 percent to $17.92 yesterday. Its January 15 calls
lit up the Heat Seeker back on
for $0.55, and the stock has been rallying ever since. Those
January contracts have inflated by more than 400 percent during
The shares have been climbing as sentiment toward China improves
and got a boost this week after it was reported that Macau casino
revenue surged 20 percent in December.
Total option volume was 11 times greater than average in MPEL, with
calls outnumbering puts by a bullish 29-to-1 ratio.
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.
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