MGM Resorts attracts odd call trade

An unusual call trade topped the option activity in MGM Resorts yesterday as it traded near five-year highs.

A trader bought 3,500 October 17 calls for $1.18, above the listed ask price at the time and against previous open interest of 14,882 contracts, optionMONSTER's Heat Seeker shows. At the same time, he or she sold 4,400 December 18 call for the bid price of $1.14 in volume above that strike's open interest of 4,065, so it is a position.

The trader appears to be rolling short calls from an October in-the-money position to December contracts that are out of the money . (See our Education section)

MGM was down fractionally at $17.23 yesterday. The casino operator ended Thursday at $17.49, its highest closing price since November 2008. Shares were down near $9 in November 2012.


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