Options News
$LVS bulls rack up big winnings
Option traders are racking up big winnings in Las Vegas Sands (LVS) today. On Aug. 20, Market Rebellion’s Unusual Activity programs detected the the purchase 5,100 Weekly $38 calls, expiring this Friday, for $0.56 to $0.68 with shares at $37.20. Open interest in the contract before the trade occurred was just 641, showing that this was a […]
Option traders are racking up big winnings in Las Vegas Sands (LVS) today.
On Aug. 20, Market Rebellion’s Unusual Activity programs detected the the purchase 5,100 Weekly $38 calls, expiring this Friday, for $0.56 to $0.68 with shares at $37.20. Open interest in the contract before the trade occurred was just 641, showing that this was a new position.
Those calls traded for as much as $5.30 today, at least 7 times their purchase prices. The stock rose 16.26% in the same time period, underscoring how options can far outperform their underlying shares.
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.
LVS ended the day’s trade up by 1.22% to $43.24 this afternoon. The casino operator’s stock has been rebounding this week from a new 52-Week low set last Thursday, Aug. 19.