By David Russell, reporter at OptionMonster
NEW YORK -- Investors rolled the dice in MGM Resorts (MGM) on Wednesday, betting on a strong earnings report.
OptionMonster's tracking programs detected the purchase of about 11,000 November 11 calls, including a single print of 9,950 that went for 30 cents. Volume was almost twice previous open interest at the strike. The November 10s and the December 10s were active as well.
Calls lock in the price investors must pay to buy stock, so the options can generate some nice leverage in the event of a rally. If there is no move in the share price, however, those November 11s will expire worthless.MGM fell 0.93% to $10.64 Wednesday, continuing to stagger in a range that has been in place for years. Wednesday's call-buyers could be looking for a rally around the next earnings report on Oct. 31. Rival casino company Wynn Resorts popped Wednesday on strong results after the close. Total option volume was triple the daily average Wednesday, with calls outnumbering puts by a bullish 20-to-1 ratio. Russell has no positions in MGM.
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