What's behind surge in MGM puts


A large put strategy leads the option volume in MGM Resorts today.

More than 13,000 MGM options have changed hands so far, and almost all that action is in one trade. optionMONSTER systems show detected the sale of 5,936 March 15 puts for $2.55 against open interest of more than 6,500 and the purchase of 5,936 April 15 puts for $2.57 against open interest of just 21 contracts.

The March options have two weeks left until expiration, so the trader may be rolling the in-the-money puts out a month for just $0.02. The trade could also be a new calendar spread , but that seems less likely. (See our Education section)

MGM is up fractionally on the day at $12.52. The casino operator bounced off support at $12 earlier in the week, a level that has been in place for all of 2013. Shares were above $13 three weeks ago. 

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