Monday, Dec. 28, 2009 | 8:26 a.m.
Options traders are doubling down on MGM Mirage, betting the new CityCenter resort on the Las Vegas Strip will restore the casino operator’s profits, Bloomberg News is reporting.
Investors buying contracts to purchase MGM for twice its current stock price through January 2011 helped drive the number of bullish options on the shares to 1.5 times the level of bearish ones, the highest ratio since June 2008, according to data compiled by Bloomberg. Existing January 2011 $20 calls increased 12-fold last week as the shares fell to $9.50.
“It’s an aggressive play,” said Frederic Ruffy, the senior options strategist at WhatsTrading.com, the New York- based provider of options-market analysis. “They’re looking for a substantial move higher.”
Join the Discussion:
Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.
Full comments policy