IGT Stock Pops on FanDuel Sports Betting Team-Up

Casino technology provider International Game Technology (NYSE:IGT) is trading higher today thanks to the company's new deal with fantasy sports specialist FanDuel. Under the agreement, FanDuel will use IGT's sports betting technology in New Jersey, following May's Supreme Court decision. Brokerage firm Jefferies responded to the news by saying similar deals could result in a meaningful increase in earnings over time for International Game Technology. 

Meanwhile, IGT stock is trading up 3% at $25.14, breaking above the $25 level that's acted as a ceiling the past two sessions after serving as chart support for several months. Longer term, the equity hit a 52-week high of $30.98 in May following the legalization of sports betting in the U.S., but has faded since, staring up at the 50-day moving average since shortly after that peak.

There's been some notable options activity on International Game Technology, too. For instance, call buying has continued to dominate, with more than 7,000 calls bought to open in the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 277 puts. However, such a bullish bias is actually quite normal, since the resultant 10-day call/put volume ratio of 25.51 lands in just the 35th annual percentile.

Looking at IGT's list of biggest open interest increases in the past two weeks, calls account for all of the top 10 strikes, lead by the August 25, 26, and 27 calls, with the front-month July 25 and 27 seeing notable increases as well. Bullish or bearish, now appears to be a good time to buy premium on the security, according to its Schaeffer's Volatility Index (SVI) of 53%, which ranks in the 34th annual percentile -- signaling lower-than-normal volatility expectations at the moment for near-term options.