Caesars Entertainment has huge opportunities in online gambling, and yesterday traders placed their bets.

The option paper was mixed, but optionMONSTER's Heat Seeker system detected unusual activity in the April 20 calls, which are well out of the money and were active late in the session. Buyers paid $0.35 and $0.40 for almost 1,500 of the contracts in volume that was well above the previous open interest of just 60 options, indicating new activity.

Those long calls lock in the price where investors can buy shares, so they can provide some nice leverage in the event of a continued rally. But they'll also expire worthless if it fails to move by mid-April. (See our Education section)

CZR leapt 8.79 percent to $15.60 yesterday. CEO Gary Loveman recently said the casino operator will benefit tremendously from the rise of online gaming, which could prosper because of a huge loyalty program with millions of members. There is also massive short position in the float, and the balance sheet is leveraged.

More than 11,400 options changed hands in the name yesterday, compared with about 1,500 in a typical session.

Disclosure: I own CZR calls.

(A version of this post appeared on InsideOptions Pro yesterday.)


More From optionMONSTER

• Quick pop expected in Royal Caribbean
  

• Bears look for more downside in Qihoo
  

• Hong Kong fund draws bearish strategy