Bulls Bet On Las Vegas Sands To Push $30
Andrew Wilkinson, Interactive Brokers, 06.14.10, 01:57 PM EDT
Options players race for calls as the casino and resort operator tags a new high.
Las Vegas Sands ( LVS - news - people ): Shares of the casino resort operator rallied as much as 4.75% today to secure an intraday- and new 52-week high of $26.94. We reported flurries of bullish options trading on the stock in the previous week, and today’s activity is similarly dominated by optimistic players. Investors populating the June contract are selling puts and buying calls to position for continued appreciation in the price of the underlying stock. LVS-bulls shed 2,100 puts at the June $24 strike to take in an average premium of $0.11 per contract. Meanwhile, investors sold 1,600 puts at the higher June $25 strike to receive an average premium of $0.21 apiece. Put sellers targeting these strike prices keep the full premium pocketed on the transactions as long as Las Vegas Sands’ share price exceeds the value of the strike prices described through expiration on Friday. Investors with an eye on share price upside potential picked up 4,800 calls at the June $27 strike for an average premium of $0.46 each. Call buyers at this strike price are positioned to make money should shares of the casino resort operator surpass $27.46 ahead of expiration. Buying interest spread to the higher June $28 strike where 5,300 calls were purchased at an average premium of $0.19 per contract. Las Vegas Sands’ shares must rally another 4.6% over today’s high of $26.94 in order for June $28 strike call buyers to start to amass profits above the average break-even price of $28.19. Finally, uber-optimists picked up 2,500 calls at the June $29 strike for an average premium of $0.10 a pop. These traders make money only if shares of the underlying stock surge 8.00% to trade above $29.10 by June expiration.
www.forbes.com/2010/06/14/...lwell-varco.html?partner=yahootix
Andrew Wilkinson, Interactive Brokers, 06.14.10, 01:57 PM EDT
Options players race for calls as the casino and resort operator tags a new high.
Las Vegas Sands ( LVS - news - people ): Shares of the casino resort operator rallied as much as 4.75% today to secure an intraday- and new 52-week high of $26.94. We reported flurries of bullish options trading on the stock in the previous week, and today’s activity is similarly dominated by optimistic players. Investors populating the June contract are selling puts and buying calls to position for continued appreciation in the price of the underlying stock. LVS-bulls shed 2,100 puts at the June $24 strike to take in an average premium of $0.11 per contract. Meanwhile, investors sold 1,600 puts at the higher June $25 strike to receive an average premium of $0.21 apiece. Put sellers targeting these strike prices keep the full premium pocketed on the transactions as long as Las Vegas Sands’ share price exceeds the value of the strike prices described through expiration on Friday. Investors with an eye on share price upside potential picked up 4,800 calls at the June $27 strike for an average premium of $0.46 each. Call buyers at this strike price are positioned to make money should shares of the casino resort operator surpass $27.46 ahead of expiration. Buying interest spread to the higher June $28 strike where 5,300 calls were purchased at an average premium of $0.19 per contract. Las Vegas Sands’ shares must rally another 4.6% over today’s high of $26.94 in order for June $28 strike call buyers to start to amass profits above the average break-even price of $28.19. Finally, uber-optimists picked up 2,500 calls at the June $29 strike for an average premium of $0.10 a pop. These traders make money only if shares of the underlying stock surge 8.00% to trade above $29.10 by June expiration.
www.forbes.com/2010/06/14/...lwell-varco.html?partner=yahootix