MGM Resorts International Stock Brushes Off Downgrade

view original post

Susquehanna downgraded the equity to “negative” from “neutral”

The shares of MGM Resorts International (NYSE:MGM) are up 2.9% at $44.37 this morning, brushing off a downgrade from Susquehanna to “negative” from “neutral.” The analyst in question said the casino concern’s prospects in the digital gaming and betting market have weakened in light of DraftKings’ (DKNG) bid to buy British gambling name Entain.

On the charts, MGM Resorts International stock has been cooling off from a Sept. 27, 13-year high of $46.06, which it conquered after bouncing off the $40 level and the 160-day moving average. Longer term, the security sports a 103% year-over-year lead.

The options pits have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MGM’s 50-day put/call volume ratio sits higher than 80% of readings from the last year, indicating long puts have been getting picked up at a quicker-than-usual clip over the past 10 weeks.

Now seems like a decent time to weigh on MGM Resorts International stock’s next move with options. The security’s Schaeffer’s Volatility Index (SVI) of 42% sits in the relatively low 21st percentile of its annual range. This means the equity sports attractively priced premiums at the moment.