$LVS bulls rack up fast winnings

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

On Nov. 2Market Rebellion’s Unusual Option Activity Service found that 9,900 Weekly $40 calls, expiring this Friday, were bought for $1.08 with shares at $39.08. This was clearly fresh buying, as open interest in the contract was just 169 before the activity appeared.

Those calls traded up to $1.95 this session, nearly 2 times their purchase prices. The stock rose 5.58% in the same time period, a large move but nowhere near that of its options on a relative basis.

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 finished the session at $40.70, up 1.17% for the day.

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