Unusual Option Trade Opportunity in Gaming and Leisure Products

According to Options and Volatility, shares of Gaming and Leisure Properties

saw unusually high options activity on Friday. Notably, the July 36 calls traded 5,312 contracts versus only 152 open interest. In addition to the increased volume, the implied volatility on the July 36 calls rose dramatically, moving from 29.05 on Thursday's close to 35.04 on the close Friday, an increase of over 5 percent. The August 36 calls, however, remained more subdued, increasing only 3.56 percent. This set up a call calendar spread opportunity, buying August 36 calls and selling July 36 calls. Options and Volatility noted this captures a 8.77 percent edge and positions bullishly along with the large call buyer. Additionally, the call calendar trade benefits from time premium decay, as the July calls expire this Friday. GLPI has earnings due August 4th, after July expiration but before August expiration, which should support the August 36 call price. Shares of GLPI closed at 35.49 on Friday, up 0.46. Disclosure: The author has no position in GLPI at the time of publishing.