By Chris McKhann , analyst at OptionMonster
Shares of Las Vegas Sands (LVS) have risen roughly 65% in the last week and options traders apparently see lots of room for more upside.
The stock, which closed Wednesday up 2.64% to $2.33, was above $9 at the beginning of 2009 before breaking back down. The casino operator's stock dropped below $3 in mid-February and hasn't been able to climb back above that level. It reached a low of $1.40 on March 12.
The options action is in the April 2.50 and April 5 calls, according to OptionMonster's tracking systems. The main trade is a bull call spread, with one block of 9,900 April 2.50 calls bought for 50 cents and the same number of the April 5 calls sold for 10 cents. This makes for a net debit of 40 cents, and therefore the trade will profit if Las Vegas Sands is above $2.90 at expiration.The implied volatility for Las Vegas Sands sits at 230%, near the highs. The historical volatility is up to 206%, up from 150% three weeks ago but still well below the highs of 300% hit back in November.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV