$LVS bulls stay for winnings

Option traders are racking up serious winnings in Las Vegas Sands (LVS) today.

On Oct. 5, our Unusual Activity Service detected the purchase of 12,500 March $50 calls for $4.35 to $4.65 above open interest of 2,082 contracts with shares at $45.02.

Those calls traded for as much as $14.45 today, more than triple their purchase prices. The stock rose 43.69% 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 4.26% to $64.38 this afternoon. The casino operator rose to a new 52-Week high today as Macau lifted its coronavirus quarantine policy for travelers arriving from mainland China