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Casino bulls pile into Melco Crown

David Russell (david.russell@optionmonster.com)

Melco Crown Entertainment has been on a monster run, and the buyers are still piling in.

optionMONSTER's Heat Seeker monitoring system detected the purchase of almost 25,000 April 23 calls for $0.95 to $1 against open interest of 7,081 contracts. Most of the volume priced at the higher premium, which shows the strong buying interest.

Those calls lock in a $23 entry price on the Macau casino operator, which has already more than doubled since August. They'll generate some nice leverage if shares keep rising over the next three weeks. See our Education Section for more on the strategy.

MPEL fell 0.09 percent to $23.15 in afternoon trading and set a new all-time high earlier in the session. It's been climbing amid a steady wave of bullishness in the casino industry , marked recently by call buying in other companies such as Caesars Entertainment and Boyd Gaming .

Total option volume in MPEL is 6 times greater than average so far today, according to Heat Seeker. Calls outnumber puts by a bullish 13-to-1 ratio.

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