There are a few good indicators here pointing to the downside for MGM.
Earnings is coming up 4/30, while the previous quarter might be ok. The outlook should be dismal.
I recommend selling a call credit spread. I don't see the stock going above $15.
5/15 - Sell $15 call and buy the $20 call. This will be $5 wide spread. The amount of premium is not that great I will say.
TastyTrade for instance recommends that collect minimum credit equal to about 1/3 of the width of the strikes.
Here we would take $1 credit on a $5 wide spread. Which would be about 1/5 the amount of the strike.
We are risking $400 to make $100 and have a 67% chance to be OTM on our $15 call.
Option prices are high, but some put debit spreads could be good here too, if you think it will go down hard.
Earnings is coming up 4/30, while the previous quarter might be ok. The outlook should be dismal.
I recommend selling a call credit spread. I don't see the stock going above $15.
5/15 - Sell $15 call and buy the $20 call. This will be $5 wide spread. The amount of premium is not that great I will say.
TastyTrade for instance recommends that collect minimum credit equal to about 1/3 of the width of the strikes.
Here we would take $1 credit on a $5 wide spread. Which would be about 1/5 the amount of the strike.
We are risking $400 to make $100 and have a 67% chance to be OTM on our $15 call.
Option prices are high, but some put debit spreads could be good here too, if you think it will go down hard.