Unusual Options Activity: Las Vegas Sands (LVS)

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  • Shares of casino giant Las Vegas Sands (LVS) have largely traded in a range from the high $50s to the mid $60s in the past few months. One trader sees shares moving to the higher end of their range (or better) in the coming month.

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  • That’s based on the June 4th $63 calls. Over 29,360 contracts traded against a prior open interest of 318, for a 92-fold jump in volume. The option expires in just over 1 month.

    The buyer of the option paid about $2.00 for the contract. With shares just over $61, they’d need to rally another $2 to close in-the-money next month.

    The casino operator saw large losses last year following the collapse of tourism in the industry, but has been a strong reopening play in recent months.

    Action to take: Casinos remain a strong reopening play that haven’t had quite the attention of cruise lines or airlines. Still, the trade is a reasonable one to play the current uptrend in shares of the past few trading sessions. Traders can likely nab a quick mid double-digit profit on this trade in the coming weeks.

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  • As with any short-term trade, time premium can work quickly against the trade, so look to take quick profits. Traders looking at longer-term trends may want to buy a call option later in the year, to get past the company’s next earnings report in July.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, and does not intend to make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.