AAL

MGM Resorts International (MGM) Traders Gamble on Gains

MGM Resorts International (NYSE:MGM) is benefiting from sector tailwinds today

Jun 4, 2015 at 3:12 PM
facebook X logo linkedin


It's been a strong day for casino stocks, and MGM Resorts International (NYSE:MGM) is no exception. Helped by an analyst-induced halo lift from one sector peer and an upbeat article from Barron's for another, the stock has added 3.2% to trade at $20.33. Meanwhile, eleventh-hour option bulls are gambling on additional upside through tomorrow's close.

Diving right in, MGM calls are trading at double the expected intraday clip. Most active by far is the weekly 6/5 20.50-strike call, where new positions are likely being purchased. These potential call buyers are wagering on the stock toppling $20.50 by week's end, when the series expires.

Call buying is par for the course, as far as MGM is concerned. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 4.30 sits just 1 percentage points from an annual high.

Technically speaking, however, MGM Resorts International (NYSE:MGM) has done little to merit such optimism -- today's gains notwithstanding. Year-to-date, the equity has lost nearly 5%, and has underperformed the broader S&P 500 Index (SPX) by more than 10 percentage points over the last two months.
 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.