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Why Options Trader Betting On Near-Term Upside In Melco Resorts & Entertainment

Published 04/01/2023, 13:39
Updated 04/01/2023, 14:40
© Reuters.  Why Options Trader Betting On Near-Term Upside In Melco Resorts & Entertainment
MLCO
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Benzinga - Shares of Wynn Resorts (NASDAQ:WYNN), Limited (NASDAQ: WYNN) gained on Tuesday after Wells Fargo (NYSE:WFC) upgraded the stock from Equal-Weight to Overweight and raised the price target from $74 to $101.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Melco Resorts & Entertainment Limited (NASDAQ: MLCO) traded at 4x average daily options volume on Tuesday.

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There was a buyer of 50,000 of the January 14 calls at an average price of $0.33 per contract, Khouw mentioned.

The trader is making a $1.65 million bet on near-term upside in Melco’s stock.

Price Action: Shares of Wynn Resorts gained 3.8% to close at $85.61 on Tuesday, while Melco Resorts shares surged 4.2% to $11.98 during the session.

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Photo: courtesy of Unsplash

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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