Unusual Options Activity in MGM Resorts International (MGM)

Today, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in  MGM Resorts International (MGM), which opened at $41.17.

There were several orders sized at 7,500 contracts traded on the $43 strike call option at the ask, dated for September 24th, 2021, representing 750,000 shares.

Additionally, there were several additional orders, seen below, sized at and around 5,775 contracts, also on the $43 strike call option, for the same date and bid, but also dated for October 1st, 2021, all totaling an approximate total of 3,788,200 shares.

These orders come just after Entain's (ENT.L) shares jumped this morning after the firm revealed they had rejected an order from DraftKings (DKNG)  There is speculation of another bid from MGM, with which Entain has a joint venture in the United States, after a $4.4 billion asset sale by the casino group last month.

That call volume was 738% greater than MGM’s 30 day average call volume.  Today, call volume is already at 46,404, with a 51.9% bullish sentiment on the flow.

Unusual Options Activity in the iShares 20+ Year Treasury Bond ETF (TLT)

In the Nasdaq Global Market Composite (NasdaqGM), we saw unusual or noteworthy options trading volume and activity in the iShares 20+ Year Treasury Bond ETF (TLT), which opened at $150.79.

There were a total of 1,000 contracts traded on the $150 strike put option at the ask, dated for November 19th, 2021, representing approximately 100,000 shares.

Additionally, there was another total of 1,000 contracts traded on the $150 strike put option at the ask, dated for October 8th, 2021, representing another 100,000 shares.

These orders come just before the FOMC minutes and meeting coming this week, along with continued concerns about the repos and rising inflation.

Both of these orders’ volumes were greater than their respective open interests, and the floor trade for the October 8th expiration was sized over open interest as of this morning’s transaction.

Why Trade the TLT?

If you are concerned that federal interest rates will rise, then bonds held by TLT will drop in value, so therefore TLT's underlying price itself will drop.

TLT may used as a hedge or for speculating when institutions, firms, and whales flee to "safe assets", which will cause yields to fall and TLT's underlying  price to rise.  

As a hedge, this can offset any losses you will sustain during such an event in your equity positions.

Unusual Options Activity in Mirati Therapeutics, Inc. (MRTX)

Finally, in the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity today in Mirati Therapeutics, Inc. (MRTX), which opened at $166.99.

There were a total of 2,000 contracts traded on the $210 strike call option at the ask, dated for January 21st, 2022, representing approximately 200,000 shares.

These orders come after reports that Mirati Therapeutics, Inc. has reported positive topline results from the potentially registration-enabling cohort of the phase 2 KRYSTAL-1 study, evaluating adagrasib in patients with KRAS G12C-Mutated advanced non-small cell lung cancer.

As can be seen, there has been a significant increase on betting surrounding the $175 and $180 strikes as of today, but open interest on the $200 and $210 strikes remain.

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