The market is often a tale of two tapes. In a strong tape poor entries are quickly forgiven. Even the weakest of option trading investors are frequently rewarded no matter how reckless their entry. The strength of the Bull often masks the poor timing of these traders. A weak tape isn’t so benevolent. Sloppy entries are quickly punished as the lion’s share of stocks fall prey to the selling pressure. In such an environment it is often prudent for traders to adopt a defensive posture. Sitting on the sidelines until more favorable conditions returns isn’t a bad idea either. Bullish traders inclined to participate in such a tape ought to limit themselves to stocks that are holding up well in the face of all the selling.

With that in mind how about considering a bullish play on a stock that has exhibited strength in the face of the recent market weakness — Las Vegas Sands (NYSE: LVS).  Yesterday’s 3.67% rise in this casino stock stood in stark contrast to the decline of more than 1% in the value of S&P 500 Index Options (CBOE: SPX).  If I were inclined to look for additional bullish exposure in this market this is the type of stock that would attract my interest. In addition to Monday’s strong performance LVS also established itself back above the 50-day moving average and is breaking out of a two week base.

Aggressive option traders may consider purchasing the LVS June 45 Call options. Those seeking a more conservative play may consider entering a LVS June 45-50 Call Spread by buying the June 45 call option and selling the June 50 call option.

Las Vegas Sands (NYSE: LVS)

(Source:  MachTrader)

At the time of this writing Tyler Craig had no position in LVS.

Follow Tyler Craig on Twitter@TylersTrading.