Caesars Stock Saw a Surge in Options Activity Today

Posted on: December 14, 2023, 02:22h. 

Last updated on: December 14, 2023, 02:22h.

With speculation of a potential interest rate cut by the Federal Reserve in the first quarter of 2024, growth stocks have seen a positive uptick, with Caesars Entertainment (NASDAQ: CZR) standing out. Options traders are actively involved, capitalizing on this positive trend. In late trading, Caesars stock is higher by 2.86%, extending its one-week gain to 11.55%. The January 19, 2024 $55-strike call is a popular option, indicating the possibility of significant near-term gains.

Caesars Entertainment
Caesars Palace Las Vegas. Options activity surged in the operator’s stock today. (Image: Caesars Entertainment)

Caesars Entertainment is getting blasted in the options pits today, with 49,000 calls and 15,000 puts exchanged so far today, which is 23 times the volume typically seen at this point. Most popular is the January 19, 2024 $55-strike call, with new positions being opened there,” according to Schaeffer’s Investment Research.

It’s interesting that the Jan. $55-strike call is popular with options traders because in order for those market participants to realize profits on those contracts, Caesars stock needs to move beyond $55 by the time markets close on Jan. 19. The shares currently reside just over $48, implying options traders are betting on significant near-term gains.

Clues from Caesars Options Activity

Caesars Entertainment is a growth stock and is often favored among options traders, providing valuable insight into near-term movements in the online sportsbook operator’s shares. Calls are popular among options traders, indicating favorable positioning.

The Horseshoe operator is performing well, having slashed its outstanding liabilities to $12.45 billion. These debt-reduction efforts will likely delight investors.

Spike in Caesars Options Activity Arrived Against Challenges

Despite numerous challenges, options buying trends remain bullish, negating concerns stemming from reductions in price targets by analysts. Analysts express a preference for Macau operators among casino stocks, reflecting a cautious outlook for domestic companies such as Caesars.

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