Gambling Stock Climbing as Travel Restrictions Ease

Calls have been picked up a faster-than-usual rate of late

Deputy Editor
Jun 30, 2021 at 10:30 AM
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Las Vegas Sands Corp (NYSE:LVS) stock is up 2.2% to trade at $52.28 at last check after news that border restrictions between Hong Kong and Macau will ease in mid-July, as there is currently a 14-day quarantine rule. Given that the company owns several properties in Macau, including Sands Macao, this will likely give the gambling name a boost.

For most of June, LVS has been on a steady path lower, guided by the overhead 10-day moving average. Down 12.3% year-to-date, the equity is on track for its fifth-straight week of losses. 

Analysts are split on Las Vegas Sands stock, with four of the eight in coverage carrying a "strong buy," rating, and four a tepid "hold." Meanwhile, the 12-month consensus price target of $68.50 is a 30.8% premium to current levels. 

Over in the options pits, calls have been more more popular than usual. This is per LVS' 10-day call/put volume ratio of 13.64 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 92% of readings from the past year, indicating calls being picked up at a faster-than-usual rate in the last two weeks. 

Lastly, the stock's Schaeffer's Volatility Index (SVI) of 35% stands higher than just 12% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations at the moment. 

 

 

 

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