Caesars Entertainment Surrenders Most Of Last Week's Gains

Caesars Entertainment Corp CZR shares are trading lower by $1.50 (15 percent) at $7.96 in Tuesday's session. The issue is under selling pressure after announcing key economic terms of its proposed restructuring.

The issue has staged a nice rally over the last few sessions as investors anticipated the plan would be favorable to the long-term outlook for the company.

In two days, it rallied from its September 20 close ($6.67) to as high as $10.84 on September 22 before ending the day at $9.78. Following a few days of consolidation, the company ended Monday's session at $9.54.

Although the definitive terms of the deal have not been announced, investors are exiting the issue as it may not be as favorable to company as originally perceived.

In a volatile session, it opened $1 lower, but immediately bottomed at $7.80 and begin to rebound. So far, the ensuing rally has come up shy of the bottom of Monday's range ($9.32), only reaching $8.80. Since making that high, it has drifted back towards the lows for the day.