Traders hit the jackpot in MGM Resorts this week.
On Monday , our tracking programs lit up with unusual activity in the short-term Weekly 12 calls. This was a pure fast-money trade, with just four sessions before the clock ran out. They bet just $0.04 to roll the dice, and it paid out in spades today as MGM made its move.
The stock gapped higher at the open this morning and is up 5.67 percent to $12.30 in afternoon trading. But that gain in the share price is chump change compared with the return on the options.
Those same Weekly calls are now trading for $0.32, a gain of 700 percent from one session to the next--not a bad way to start the New Year. (A few traders were lucky enough to take profits at $0.39, a gain of almost 900 percent.)
Option volume remains heavy in MGM today, with more than 43,000 contracts versus the 12,500 average in a typical session. But the activity is dominated by puts, making it much less bullish. It looks like the money has been made in this name for the time being.
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