Caesars Entertainment Corporation (CZR) is a casino entertainment company operating land-based and riverboat casinos in addition to racetracks, hotels and a number of other resorts and entertainment properties. Shares of CZR are currently trading around $17.65 in a 52 week range of $4.52-$26.57. The stock has been on a tear this year adding over 155% to share prices year to date. Options activity in CZR in today’s trading session is suggesting that traders believe this rally will continue through March of next year. Early in the session a trader sold 1,354 CZR Mar 17.5 puts for $3.20. This is a very bullish trade with a high level of risk that indicates this trader’s relatively high level of conviction on CZR. While this trader collects $433,280 worth of premium they are technically risking over $1.9 million on this trade. We believe that this unusual option activity in CZR sets up well as an opportunity for a long term trade in.
Trade: Buying the CZR Mar 15 Calls for $4.35
Risk: $435 per 1 lot
Reward: Unlimited
Breakeven: $19.35
