LVS, JBLU Options – Unusual Trading Activity – August 11, 2014

| August 11, 2014

Unusual Trading VolumeThis week we’re taking a look at unusual options trading activity in Las Vegas Sands (LVS) and JetBlue Airways (JBLU).

As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.

This is something professional options traders pay a lot of attention to, and for good reason… Unusual options activity can “tip off” big moves in a stock, either up or down.

So let’s take a look at some ‘interesting’ activity that caught our eye this week:

Las Vegas Sands (LVS)

The tough times for casinos could continue according to options action in LVS.

LVS is currently trading for $68.42, down 6% over the last week. The price is 29% above the 52-week low of $53.13 and is 22% below the 52-week high of $87.15.

A trader purchased 2,000 March 65 puts for $5.15. With open interest close to zero prior to the trade, this is definitely an opening position.

Casinos have been down lately on weaker revenue expectations. However, this trade suggests LVS could go much farther down. The stock will need to drop below $60 just to break even on these puts. Keep in mind though, the options are good until March.

JetBlue Airways (JBLU)

JBLU’s impressive run could continue, judging by recent bullish options action.

JBLU is trading for $11.81, up 34% on the year. The shares are now 2% above the previous 52-week high of $11.59 and 96% above the 52-week low of $6.04.

Traders sold 5,500 September 11 puts for $0.30. As long as the stock remains above $11 by September expiration, the put sellers will keep the full amount of premium from the sale.

With as sharply as JBLU moved above $11, you’d think there could be some risk to selling puts so close to the stock price. However, there appears to be solid support at $11. Plus, the put sellers may be willing to get long the stock at that price.

More Options Ideas…

That wraps up this week’s unusual options trading and volume…

Keep in mind, there’s a lot more unusual options activity going on than what we discuss here.

We just try to bring you what we feel are the most significant ones– and the ones you might actually be able to make some money on!

So keep an eye on your email inbox… we have a lot more options trading ideas coming your way!

Yours in Profit,

Gordon Lewis

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Category: Unusual Options Trading Activity

About the Author ()

Gordon Lewis is the Chief Investment Strategist and editor for the popular daily newsletter – Options Trading Research. He’s also editor of our dynamic theme-based options trading service, Advanced Options Adviser, and one of the key analysts behind the highly successful Options Trading Wire.