MGM adds 16 cents to $13.11 and early options trades include a Jan 12.5 – 16 call spread, bought at $1.40, 5000X. Shares of the casino-operator are up 10.6 percent snice June 20 and now testing a 200-day exponential moving average. Today’s spread trader might be anticipating additional strength and rally beyond $16 through the Jan expiration. However, open interest in the 12.5s is sufficient to cover (69K). So, the spread might roll an existing position up in strike prices.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.