Put selling topped the option trade in MGM Resorts International as shares rebounded.
A block of 5,000 of the December 21 puts crossed our monitoring systems for the bid price of $0.45. The previous open interest was 198 contracts, so that was a new opening position.
The put seller is looking for MGM to remain above $21 over the coming months. They take on the risk of buying shares for that price if they go below it. Their profit will be the $0.45 they already collected. (See our Education section.)
MGM rose 0.32 percent to $24.81, and is down from $27 just last week. It has traded mainly between $24 and $27 since March.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.