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Traders see support for MGM Resorts

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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