Despite MGM Resorts (MGM) facing a challenging economic backdrop and recent stock underperformance, options traders are not showing panic, suggesting a potential bullish opportunity. Analysis of volatility skew indicates that while traders are insuring against downside risk, the degree of this protection is not extreme. Using a combination of Black-Scholes and Markov property analysis, the article suggests a potential trading range for MGM stock and highlights a specific bull call spread for aggressive speculators.
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Options Traders Pounce on MGM Resorts Stock (MGM) as Volatility Spikes
Despite MGM Resorts (MGM) facing a challenging economic backdrop and recent stock underperformance, options traders are not showing panic, suggesting a potential bullish opportunity. Analysis of volatility skew indicates that while traders are insuring against downside risk, the degree of this protection is not extreme. Using a combination of Black-Scholes and Markov property analysis, the article suggests a potential trading range for MGM stock and highlights a specific bull call spread for aggressive speculators.