Unusual Options Activity: Live Nation Entertainment (LYV)

Ticket seller Live Nation Entertainment (LYV) is up 17 percent over the past year, slightly beating the returns on the S&P 500. One trader sees further gains in the months ahead.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU
  • That’s based on the January 2024 $92.50 calls. With 72 days until expiration, 3,815 contracts traded compared to a prior open interest of 105, for a 36-fold increase in volume on the trade. The buyer of the calls paid $2.70 to make the bullish bet.

    Live Nation recently traded for about $85, so shares would need to rise about $7.50, or just under 10 percent, for the option to move in-the-money.

    The strike price of the option is still well under the stock’s 52-week high of $101.74, which shares last saw during the summer.

    Operationally, the company is going strong, with both earnings and revenues up over 30 percent each in the past year. Live Nation also has nearly $6 billion in cash.

  • Special: Legendary CBOE Trader Reveals: Make This ONE Trade Every Time The Government Drops Economic Reports
  • Action to take: Shares likely have some upside from here, especially as consumers continue to spend on events and entertainment options. The recent market rally has broken the downward trend, so investors can buy shares and play the upside over the next few months.

    For traders, the January calls are reasonably priced. They could turn a low double-digit move higher in shares into a high double-digit return in the coming months.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU