Melco Crown Entertainment has pulled back from all-time highs in the last month, but a large trade apparently believes that the slide is ending.
optionMONSTER's tracking systems detected the sale of 10,000 July 22 puts for $0.75 at the same second yesterday. This is clearly a new position, as the strike's open interest was just 496 contracts before the trade appeared.
The put seller is betting that MPEL will stay above the $22 strike price through expiration in mid-July. If the stock falls below that level, the trader will face the obligation to buy shares at an effective price of $21.25 once the $0.75 credit from the put sale is included. (See our Education section)
MPEL rose 1.49 percent yesterday to $23.19. The Macau-based casino operator has been trending lower since hitting resistance at lifetime highs around $25 in early May.
Total option volume in the name was 13,330 contracts yesterday, triple its daily average for the last month.
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