By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Analysts gave Las Vegas Sands (LVS) a "buy" rating recently, and traders are following that recommendation.
OptionMonster's tracking programs detected buying in the July 55 calls Wednesday. The casino operator drew large purchases for 52 cents, much of it in a single block.
Those contracts lock in the price where the stock can be bought no matter how far it might rise. That could provide substantial leverage if the shares rally.Las Vegas Sands rose 1.32% to $51.38 Wednesday. It pulled back from above $60 in May and traded all the way down to $48 earlier in the week. Craig-Hallum raised its rating on the name to "buy" from "neutral" on Tuesday and said it sees the stock going back to at least $59. Nomura was also recently issued an opinion that the recent selloff provides a buying opportunity for casino companies that operate in Macau. A little more than 40,000 options changed hands in the name Wednesday, led by 29,000 calls. Najarian has no positions in LVS.