Dec 23 () - Real-time equity news U.S. stock market report 1451 ET 23Dec2011 Las Vegas Sands call spread suggests strong rally in 2012 --------------------------------------------------
Bullish action in Las Vegas Sands Corp's call options indicates one strategist is betting that the shares in the casino resort operator will rally sharply in the first couple of months of 2012, said Interactive Brokers Group options strategist Caitlin Duffy. Late on Friday, the stock rose 1.59 percent to $43.43. The investor bought a bull call spread which involved the purchase of 2,000 February $46 strike calls against the sale of the same number of February $50 strike calls, all for a net premium of $1.05 per contract, she said. Profits are available on the spread if shares top the break-even price of $47.05 at expiration. The bullish player may walk away with maximum potential profits of $2.95 per contract as long as the shares settle above $50 at February expiration, Duffy said. The stock last traded above $50 back on Sept. 21, but has not closed above that level since Feb. 3. Duffy surmised the call spread may be the trader's limited-risk, limited-reward play on the stock ahead of its fourth-quarter earnings report on Feb. 2. A positive earnings surprise may result in substantial profits to the call spreader should shares move up toward the $50 level. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1420 ET 23Dec2011 Chelsea March puts sparked interest
www.cnbc.com/id/45779098
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