Bullish Players Frequent Las Vegas Sands as Shares Continue to Hit New 52-Week Highs

LVS – Las Vegas Sands Corp. – Shares of the casino resort operator rallied as much as 3.5% during the trading session to hit an intraday- and new 52-week high of $47.48 on news Macau casino revenue, bolstered by China’s Golden Week holiday, jumped 50% to a record in October. Analysts at Morgan Stanley raised their target price on LVS to $50.00 from $36.00, maintained an ‘overweight’ rating on the stock, upped their EPS estimate on the company for fiscal 2010 to $0.96 a share from $0.69 a share, and increased their EPS forecast for 2011 for LVS to $1.85 per share from $1.19 per share. Options traders are initiating bullish positions on the casino operator today and are currently trading more than 2.2 calls on the stock for each single put option changing hands. Near-term November contract calls and puts are the most popular with less than 30 minutes remaining before the final bell. Bulls sold more than 1,000 puts at the November $45 and $47 strikes to pocket an average premium of $1.23 and $2.10, respectively. Investors short the puts keep the premium received as long as shares exceed the strike prices described by November expiration. Meanwhile, call buyers scooped up 1,600 in-the-money contracts at the November $46 strike for an average premium of $2.63 each. Another 1,100 calls were purchased at the higher November $47 strike for an average premium of $2.14 a-pop. Investors hoping to see LVS shares increase significantly before the year ends purchased some 1,800 calls up at the December $50 strike for an average premium of $2.24 per contract. Traders holding these contracts profit if Las Vegas Sands’ shares surge 10.00% over today’s high of $47.48 to trade above the effective breakeven price of $52.24 by expiration day next month. Options implied volatility on LVS is up 5.7% to arrive at 50.30% as of 3:40 pm in New York trading.

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.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.


*