Investors with a lot of money to spend have taken a bearish stance on PENN Entertainment PENN.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with PENN, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 8 uncommon options trades for PENN Entertainment.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $129,530, and 4 are calls, for a total amount of $229,205.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $16.5 to $22.5 for PENN Entertainment over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for PENN Entertainment's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of PENN Entertainment's whale trades within a strike price range from $16.5 to $22.5 in the last 30 days.
PENN Entertainment Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| PENN | CALL | SWEEP | BEARISH | 04/12/24 | $1.05 | $0.96 | $1.04 | $17.00 | $109.8K | 38 | 1.3K |
| PENN | CALL | SWEEP | BULLISH | 04/12/24 | $1.12 | $1.05 | $1.07 | $17.00 | $46.4K | 38 | 1.8K |
| PENN | CALL | TRADE | BEARISH | 06/21/24 | $0.74 | $0.73 | $0.73 | $22.50 | $36.5K | 2.4K | 500 |
| PENN | CALL | SWEEP | BULLISH | 04/12/24 | $1.13 | $1.12 | $1.12 | $17.00 | $36.4K | 38 | 2.2K |
| PENN | PUT | TRADE | BEARISH | 01/17/25 | $3.25 | $3.2 | $3.25 | $17.50 | $32.8K | 2.2K | 205 |
About PENN Entertainment
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 89% of total sales in 2023 (11% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates mid-30% EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
After a thorough review of the options trading surrounding PENN Entertainment, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
PENN Entertainment's Current Market Status
- With a volume of 1,542,496, the price of PENN is down -2.57% at $17.8.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 30 days.
Expert Opinions on PENN Entertainment
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $29.0.
- Reflecting concerns, an analyst from Mizuho lowers its rating to Buy with a new price target of $29.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for PENN Entertainment, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
