Long-term call selling tops today’s option trade in MGM Resorts as shares climb to their highest levels in five years.
The January 2015 22 calls dominate the action in the casino operator this morning. optionMONSTER systems detected the sale of 6,250 of those calls for $1.61 against previous open interest of 1,449 contracts at that strike, clearly showing that this is a new position.
The calls could have been sold naked with an initial bearish bias, but they were more likely traded against long shares in a covered-call position. The latter would be bullish up to, but not beyond, that $22 price strike price.
— Option Monster