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IGT receives vote of confidence

By: optionMONSTER
Posted: 6/10/2010 11:47:00 AM
Referenced Stocks: IGT;WMS

International Game Technology has been moving sideways for almost a year, and one investor is confident it will hold its ground.

IGT Chart 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 Tuesday.

(Chart courtesy of tradeMONSTER)