Las Vegas Sands bets win big

Upside option positions hit the jackpot in Las Vegas Sands before they expired this afternoon.

On June 1, Investitute’s scanning systems detected found that 1,700 Weekly $60 calls expiring today were purchased for $0.98 to $1.25 with shares at $60.75. This was fresh buying, as open interest in the strike was only 268 contracts before the activity appeared.

This morning those calls traded for $4.83, a gain of more than 330 percent. The stock was up less than 6.7 percent in the same time frame, showing how options can exponentially outperform their underlying shares. It was the second winning LVS trade posted on Investitute in the last 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.

LVS reached a 52-week high of $64.89 this morning before pulling back with the broader market to close at $63.69, down 1.45 percent on the session. The company had been rallying along with other casino operators since the beginning of the month on strong numbers from Macau.