Boyd Gaming fell hard last week, and now traders are looking for a bounce.
optionMONSTER's Heat Seeker monitoring system detected the purchase of about 3,000 November 11 calls, most of which priced for $0.10 and $0.15. Volume surpassed open interest, indicating that new money was put to work on the long side.
These long calls lock in the price where shares can be purchased in the Las Vegas-based casino operator, letting investors cheaply position for a rebound. They also stand to enjoy considerable leverage if a rally ensues. (See our Education section)
BYD is off 0.78 percent to $10.13 in afternoon trading and is down 23 percent in the last month. Most of that drop occurred on Oct. 31 after third-quarter earnings and revenue both missed estimates.
The stock is now back to roughly the same $10 level where it bounced in June, which could make some chart watchers think that it's at support and will rebound.
There was also heavy volume in the January 10 calls today, although they appear to be sold--possibly as part of a buy-write strategy .
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