Scientific Games has been working higher, and the bulls are sticking with the name.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 7,015 April 15 calls for $1.82 and the sale of an equal number of January 12.50 calls for $1.17. Volume was below open at the lower strike, which indicates an existing position was rolled from one contract to the other.
Making the adjustment cost $0.65 and provided an additional three months of upside exposure to the maker of casino and lottery games. Such long calls lock in the price where shares can be purchased, controlling moves higher with limited cost. The transaction also increased the investor's time value and lowered the delta , thereby reducing some of their pain if the stock falls. (See our Education section)
SGMS is down 3.79 percent to $12.96 in afternoon trading but is still up about 100 percent since bottoming under $7 in August. The top of its long-term range is around $19 to $20, and today's trade is apparently looking for a return toward those levels by spring.
Total option volume is 31 times greater than average so far, with calls outnumbering puts by a bullish 20-to-1 ratio.
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