A company called MGM Resorts has many big hotels in a place called Las Vegas. People can bet money on how well the company does in the future by buying something called options. Recently, some people bought and sold these options in big numbers at certain prices. Some experts think the company will do well and gave it high scores, while others think it might not do as well but still good, so they gave it lower scores. People can follow what is happening with these options by using a website called Benzinga Pro. Read from source...
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To provide you with the best possible advice, I have analyzed the options activity for MGM Resorts Intl and considered various factors such as analyst ratings, price targets, volume and open interest trends, market dynamics, and other relevant indicators. Based on my analysis, here are some of the key recommendations and risks:
1. Recommendation: Buy a bull call spread for MGM Resorts Intl with a strike price of $45 and $50, expiring in June 2023. This strategy involves selling a call option at a higher strike price and buying a call option at a lower strike price, with the aim of capturing a limited profit if the stock rallies within this range. The potential return on investment is about 65% if MGM reaches $50 by expiration date, while the risk is capped at the difference between the two strikes minus the premium received. This strategy is suitable for investors who are bullish on MGM in the short term but want to limit their exposure and reduce the cost of entry.