After a possible short squeeze last month, Melco International Development (200 HK) shows no signs of retracing. There was another material move in the spread yesterday.
The Trade:
Melco International Development (200 HK) appears a short.
But I’ve called this trade incorrectly lately.
Melco has roughly performed in line with HK-listed peers.
It is Melco Resorts & Entertainment (MLCO US) that has underperformed recently; possibly as investors exit.