International Game Technology has been moving sideways for
almost a year, and one investor is confident it will hold its
optionMONSTER's tracking systems detected the sale of 5,000 July 15
puts for $0.10 against open interest of just 246 contracts. The
transaction pushed total options volume in the maker of casino
games to more than twice the daily average.
IGT is up 3.06 percent to $18.88 in morning trading and has been
consolidating around $20 since July. Its last earnings report on
April 22 was mixed, with profit matching forecasts and revenue
coming in light.
The stock appears to be going through a long consolidation phase
after more than tripling between March and September 2009, finding
support above $16 three months ago.
Today's put seller thinks it will hold that level and sees an
opportunity to collect a small premium in the meantime.
The trade followed a bullish transaction in rival WMS Industries on
(Chart courtesy of tradeMONSTER)