$ERI opens the doors for bulls

Eldorado Resorts (ERI) bulls have continued to bet on their hot hand in the domestic casino operator, collecting even more profits today.

On May 29, Market Rebellion’s Unusual Option Activity Service detected the purchase of 2,000 Weekly $36 calls in one print expiring on Jun. 5 for $1.45 with shares at $34.17. This was clearly fresh buying, as open interest in the strike was just 215 contracts before that session began.

Those calls traded up to $6.70 today, more than 4.5 times their purchase price. The stock rose 24.29% in the same time frame, a huge move but still nowhere near that of its options.

It marks the third winning trade in the name to be posted on Market Rebellion in the past month.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

ERI was higher by 10.44% today settling at $42.94 after opening, and closing, above its 200-Day Simple Moving Average. The domestic casino operator rose along with its peers as Las Vegas has reopened its doors to patrons.