Las Vegas Sands Corp. (NYSE:LVS) stock is up 12.1% to trade at $56.71 at last check, after the casino giant reported adjusted third-quarter earnings of 78 cents on $3.3 billion in revenue, both of which exceeded expectations. The company cited its Macau and Singapore business strength as catalysts for the top-line beat, which garnered four price-target hikes in response, including one from J.P. Morgan Securities to $70 from $60.
Pacing for its best single-day percentage gain since May 2022, the casino stock is now up 86% off its April 8 lows at $30.18. The shares are trading at their highest level since August bouncing off their 126-day moving average, an area that coincides with $45 .
An unwinding of pessimism in the options pits could create additional tailwinds. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) that sits in the 70th percentile of annual readings.
That sentiment shift appears to be underway today, with 20,000 calls exchanged so far -- six times the volume typically seen at this point -- compared to just 5,708 puts. The most active contract is the weekly 10/24 55-strike call, with new positions opening at the 50-strike call in that series.
Options are sure to be popular in a post-earnings volatility crush. This is per LVS' Schaeffer's Volatility Index (SVI) of 42% that ranks in 20th percentile of its annual range. Plus, with a Schaeffer's Volatility Scorecard (SVS) of 80 (out of 100), the stock has a history of exceeding option trader's volatility expectations during the past year.
