Las Vegas Sands Corp. (LVS) Puts Pop Amid Sector-Wide Slump

Las Vegas Sands Corp. (NYSE:LVS) option traders are scooping up the May 52.50 put today

Apr 29, 2015 at 12:19 PM
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Las Vegas Sands Corp. (NYSE:LVS) is feeling the heat from sector peer Wynn Resorts, Limited's (NASDAQ:WYNN) dismal turn in the earnings confessional. At last check, shares of LVS were off 5% at $52.62 -- and on pace to notch their lowest daily close since mid-March. In the options pits, volume has soared to three times what's typically seen at this point in the day, with a number of put players betting on LVS to extend today's slide over the next several weeks.

Specifically, the stock's most active put in today's session is the May 52.50 strike, and it looks as if new positions are being purchased here for a volume-weighted average price (VWAP) of $1.33. If traders are indeed buying to open the puts, at-expiration breakeven is $51.17 (strike less VWAP), or territory not seen since mid-December. Amid today's plunge, delta on the put has moved to negative 0.47 from 0.20 at last night's close, implying an increased probability of an in-the-money finish.

This skepticism is witnessed outside of the options pits, as well. Short interest, for example, accounts for a healthy 7.6% of the security's available float, and represents 4.6 times the equity's average daily rate of trading.

On the charts, the stock has put in an uninspiring performance over the long term, down more than 33% year-over-year. More recently, Las Vegas Sands Corp. (NYSE:LVS) shed 2.2% after the company's dreary earnings report and subsequent round of bearish brokerage notes.


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