Call Options on LVS on 2/26/2013

Las Vegas Sands Corp. (LVSC) is a global developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. Its operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. The Company owns and operates integrated resorts in Asia and the United States. Through its 70.3% ownership of Sands China Ltd. (SCL), it owns and operates integrated resort properties in the Macao Special Administrative Region (Macao) of the People's Republic of China. These properties include The Venetian Macao Resort Hotel (The Venetian Macao), the Four Seasons Hotel Macao, Cotai Strip (the Four Seasons Hotel Macao, which is managed by Four Seasons Hotels, Inc.) and the Plaza Casino, which it owns and operates (together with the Four Seasons Hotel Macao, the Four Seasons Macao) and the Sands Macao.


Stockwinners is bullish on this name for the following reasons:

  1. We are seeing unusual activity in the option market and it is bullish . There is an undisclosed institutional buyer of large number of call options that believes on upside for Vegas. This buyer purchased over 18,000 contracts of may 52.5 calls.
  2. There is a fair amont of time for this trade to work out

Trade

  • Buy 1 May $52.50 Call at $2.25
  • For a net debit of $2.25

Profit/Loss Analysis

  • Breakeven at $54.75
  • Maximum profit is unbounded
  • Maximum loss is ($225.00) at strike of $52.00

Closing Summary

  • Sold 1 May $52.50 Call at $3.75

Position closed on 3/21/2013 at price of $3.75 with a 66.67% gain in 23 days.

Updates

3/21/2013 12:55:34 PM

We are closing this position. We are selling the May $52.5 Call options on LVS at $3.75. There may be more upside to this trade but we do not want to see our profits evaporate!

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