Long-Term Speculators Eye Gaming and Leisure Properties, Inc. (GLPI)

Gaming and Leisure Properties Inc (GLPI) is seeing increased call activity today

Digital Content Group

Mar 9, 2015 at 3:15 PM

GLPI

Gaming and Leisure Properties Inc (NASDAQ:GLPI) is up 10.5% at $35.78, after offering to buy $4.1 billion worth of real estate assets and debt from Pinnacle Entertainment, Inc (NYSE:PNK) -- yet another indication M&A Monday is alive and well. Options volume has ramped up on the news, too, with calls crossing at eight times the expected amount for this point in the day.

Drilling deeper, GLPI is seeing some buy-to-open activity at the July 39.60 call, which is also the stock's most active option. By purchasing these positions, traders anticipate the shares will topple $39.60 by the close on Friday, July 17, when the series expires. This would put GLPI in territory not explored in more than a year. However, thanks to today's bull gap, delta on the call has jumped to 0.24 from 0.067 at last Friday's close.

Short sellers may be feeling the heat today. Specifically, short interest has increased 12.7% during the two most recent reporting periods to 3.9 million shares -- or nearly six times Gaming and Leisure Properties Inc's (NASDAQ:GLPI) typical daily trading level. If the stock continues to surge on the charts -- it's up 22% year-to-date -- an unwinding of these bearish bets could spell additional upside.

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