Options Brief: Las Vegas Sands (LVS)

LVS – Las Vegas Sands Corp. – Shares of the casino resort operator rallied as much as 4.75% today to secure an intraday- and new 52-week high of $26.94. We reported flurries of bullish options trading on the stock in the previous week, and today’s activity is similarly dominated by optimistic players. Investors populating the June contract are selling puts and buying calls to position for continued appreciation in the price of the underlying stock. LVS-bulls shed 2,100 puts at the June $24 strike to take in an average premium of $0.11 per contract. Meanwhile, investors sold 1,600 puts at the higher June $25 strike to receive an average premium of $0.21 apiece. Put sellers targeting these strike prices keep the full premium pocketed on the transactions as long as Las Vegas Sands’ share price exceeds the value of the strike prices described through expiration on Friday. Investors with an eye on share price upside potential picked up 4,800 calls at the June $27 strike for an average premium of $0.46 each. Call buyers at this strike price are positioned to make money should shares of the casino resort operator surpass $27.46 ahead of expiration. Buying interest spread to the higher June $28 strike where 5,300 calls were purchased at an average premium of $0.19 per contract. Las Vegas Sands’ shares must rally another 4.6% over today’s high of $26.94 in order for June $28 strike call buyers to start to amass profits above the average breakeven price of $28.19. Finally, uber-optimists picked up 2,500 calls at the June $29 strike for an average premium of $0.10 a-pop. These traders make money only if shares of the underlying stock surge 8.00% to trade above $29.10 by June expiration.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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