MGM Nov 10 puts have traded more than 32,000 contracts against 18,740 in open interest. The stock hit a morning high of $10.04 after peer PENN rallied 30 percent on news it plans to split its real estate and operating assets. However, MGM is now up just 13 cents to $9.50. Buyers drove some of the flow in the Nov 10 calls on the casino operator for 14 cents per contract shortly after the opening bell. However, the stock has been drifting lower off opening highs and some of those positions were possibly covered later in the day. The contract expires after today and is falling 50-cents out-of-the-money. The market is now just a couple of pennies per contract. Total volume in MGM is about 58,000 calls/6.500 puts, which reperesent 4X the daily average.
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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.