LVS ? Las Vegas Sands Corp.
Shares in the resort casino operator are up sharply today, trading 4.0% higher on the day at $47.21 just before 12:30 p.m. in New York. The Fed?s decision to extend its bond buying program and a number of analyst upgrades on Las Vegas Sands helped lift demand for bullish options on the stock this morning. A number of options market participants appear to be betting that shares in LVS have more room to run in the near term. Plain-vanilla call buying is prevalent across several out-of-the-money strikes in the September and October expiries.
Traders positioning to benefit from strong performance in the shares next week snapped up around 1,000 of the Sep. 21 ?12 $47.5 strike calls at an average premium of $0.54 each, and purchased another 1,800 calls at the $48 strike at an average of $0.40 apiece. Buyers of the $47.5 and $48 strike calls may profit at expiration next week in the event LVS shares rally at least another 1.8% and 2.5%, respectively, to top breakeven prices at $48.04 and $48.40.
Meanwhile, one strategist initiated a 600-lot Oct. $49/$52.5 call spread at a net premium of $0.61 per contract. The strategy reduces the cost of taking a bullish stance on the stock, but also limits potential gains to the upside. The trader is positioned to profit should shares in LVS rally 5% to exceed the breakeven point at $49.61, with maximum possible profits of $2.89 per contract available given an 11% move higher to $52.50 by expiration next month. Shares in LVS last traded above $52.50 back in May.
?BZH ? Beazer Homes USA, Inc.
Bullish options in play on the builder of single- and multi-family homes today are looking for shares in Beazer Homes USA to hit new 52-week highs in the near term. The stock increased as much as 12% in the first half of the trading session to touch an intraday high of $3.93.
Traders preparing for the price of the underlying to extend gains snapped up around 4,000 calls at the Oct. $4.0 strike for an average premium of $0.20 apiece. Call buyers make money as long as shares in Beazer Homes rally another 9% over the current price of $3.84 to exceed the average breakeven point at $4.20 by October expiration.
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