| Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners!
Did someone say jackpot?!
Probably not… especially because I know a lot of you are wondering how I can talk about casino stocks when there's not much going for them.
But what if I told you about a few names that hardly anyone is talking about?
Now, I know there's a lot working against casino stocks right now.
Coronavirus cases are climbing again and we could see another round of travel restrictions.
Heck, the first round hasn't even been fully lifted!
And, yes, I know that part of the casino trade is China. Chinese stocks are dipping… and casino stocks have inherent exposure to Macau, "the Las Vegas of Asia."
And, yes, I know that casino stocks have yet to rally or bounce back at all, with the exception of MGM Resorts International (NYSE: MGM). And that increase was largely due to a deal between Amazon and MGM Studios.
With all of that working against them, why am I gambling on these undervalued casino stocks? Because people are degenerates — and I don't just mean the Reddit apes.
4 Casino Stocks Worth Betting On
◾ Melco Resorts & Entertainment Ltd. (Nasdaq: MLCO) and Las Vegas Sands Corp. (NYSE: LVS): I've grouped the four stocks into two sections because I like them for similar reasons. Melco and LVS both have charts that leave a lot to be desired. They're not sexy at all.
But I'm seeing massive institutional call buying in both stocks, and I'm forward-thinking. What I mean is that when people can travel freely, and I don't just mean to Vegas, they're doing so with a lot of money. And as I said, people are degenerates...
With all of the money they won from the stock market last year... or took out on loans... or that the Federal Reserve has printed, people are going to do three things: drink, party and gamble. They love to roll the dice.
So I think these names have a ton of upside once that becomes an option for people again. Even better... they're flying under the radar because not many people think of these names.
◾ International Game Technology PLC (NYSE: IGT) and Boyd Gaming Corp. (NYSE: BYD): These two are the opposite of Melco and LVS. By which I mean, the charts are fantastic.
Both companies manufacture the parts that go in the slot machines and other gambling devices. And again, people aren't talking about these! As mainstream media continues to show these stocks no love, the great charts will continue to look better and better.
BIG Wins
We had a few more big winners this week from our Weekly Blitz Alerts strategy, honing in on rival, surging soda stocks — sweet!
My power was cutting in and out Monday afternoon because of Hurricane Elsa, but the Blitz Tracker locked onto pre-earnings bullish flow in PepsiCo Inc. (Nasdaq: PEP). Traders bought 1,000 contracts of the July 16 $152.50 calls.
With those calls slightly out of the market makers' expected move of $2.15, an alert was sent to Weekly Blitz Alerts members to take a position in the $150 strike calls. Pepsi exceeded expectations across the board and raised guidance when it reported earnings ahead of Tuesday's opening bell.
Shares spiked nearly 3% higher from the close, catapulting the options over 160% on the day's rally!
- +52.17%... +105.22%... +160.87% on three legs of PEP (July 16 $150 CALL).
- Entered on July 12 at $1.15 a contract.
- Exited on July 13 at $1.75, $2.36 and $3.00 a contract, respectively.
On July 6, the Blitz Tracker picked up a huge surge of options activity in Pepsi rival Coca-Cola Co. (NYSE: KO). Heavy hitters purchased 6,000 contracts of the KO July 23 $54.5 calls, along with 4,765 of the monthly August $55 calls.
With Coke set to report earnings on July 21, the big boys and girls were looking for a runup into earnings with bullish positioning in the options, and that's just what they got! On the heels of Pepsi's stellar earnings report, shares of KO jumped 1.5% on July 13 — a huge move for a low-beta stock like Coke. That push lit the fuse on the options premiums, spiking over 200% on the day, scoring another huge win for Weekly Blitz Alerts.
- +53.85%... +84.62%... +210.77% on three legs of KO (July 23 $54.5 CALL).
- Entered on July 8 at $0.65 a contract.
- Exited on July 13 at $1.00, $1.20 and $2.02 a contract
If you have a big score you'd like to share with your fellow Future of Wealth readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
The Bill That Could Send These Stocks Soaring…
The House of Representatives passed a bill…
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There's only a narrow window of time to get ahead of this historic event.
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
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