$ERI bulls run at full tilt

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

On Monday, Jun. 1, Market Rebellion’s Unusual Option Activity Service detected the purchase of 7,000 Weekly $40 calls expiring on Jun. 5 for $0.49 to $0.65 with shares at $36.17. This was clearly fresh buying, as open interest in the strike was just 723 contracts before that session began.

Those calls traded up to $7.00 today, more than 10 times their purchase prices. The stock rose 29.87% in the same time frame, a huge move but still nowhere near that of its options.

It marks the fourth 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 1.93% today settling at $43.77 after trading as high as $47.18 earlier in the session. The domestic casino operator rose as Las Vegas has continued to roll out reopenings.