Trader Rolls the Dice on a $1.6 Million Bet in MGM Resorts International (MGM)

MGM Resorts International (MGM) owns and operates casinos and resorts in the U.S. and China. The company’s stock is currently trading around $24.00 in a 52 week range of $11.97-$28.75. The stock has performed relatively well this year with shares rallying 2.25%. Options orders hitting the tape early in this morning’s trading session would indicate that traders believe this trend will continue through the end of the year. Early this morning a trader bought 14,674 MGM Jan 2015 30 calls for $1.10. This is a very bullish trade that requires this trader to lay out more than $1.6 million in capital. Although the stock has traded below the cloud, it is still in positive territory this year. With such a large bet being made in MGM it would appear that this trader is expecting some serious upside for MGM this year.

Block Trader: Bought the MGM Jan 2015 30 Calls for $1.10
Risk: $110 per 1 lot
Reward: Unlimited
Breakeven: $31.10