|Bid||80.19 x 1100|
|Ask||80.20 x 1800|
|Day's Range||77.38 - 81.75|
|52 Week Range||35.84 - 153.41|
|Beta (5Y Monthly)||2.42|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 04, 2020 - Nov 09, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 25, 2020|
|1y Target Est||97.60|
Gambling stocks were all the rage on Thursday. The S&P 500 rose on the session, and my watchlist was littered with big gainers -- but none stood taller than casino and gaming stocks. The catalyst for the sudden surge was the expectation-beating earnings report from Penn National Gaming (NASDAQ:PENN). In fact, it sent PENN stock up 14.3% by the closing bell, and brought buyers rushing into the industry.That said, the buying bonanza was much needed. Casinos have been one of the hardest-hit areas due to the novel coronavirus. And while many sectors have fully recovered from the March massacre, these three tickers I have in mind remain a far cry from their peaks.Nonetheless, they don't completely lack bullish characteristics. And with Thursday's rally breathing new life into the space, we could see some upside follow-through in the day's to come.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Travel Stocks to Buy Banking On Pent-Up Demand That said, here are three of the best gambling stocks to consider: * MGM Resorts (NYSE:MGM) * Wynn Resorts (NASDAQ:WYNN) * Las Vegas Sands (NYSE:LVS)After laying out the price levels that matter, we'll suggest which options spreads are best on these gambling stocks. So, let's dive in. Gambling Stocks to Buy: MGM Resorts (MGM) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade After PENN, MGM stock was the biggest gainer of all the casinos. It surged 10.4%, with more than 35 million shares traded. The participation was well above average, and propelled the shares back above the 50-day moving average. Not only that, but we also broke above a horizontal resistance pivot -- clearing the way for a push toward $21.Moreover, Thursday's breakout is what buyers have been waiting for to signal momentum has returned. Sure, the fire could fizzle. However, I'm willing to bet dips will get bought, and the path of least resistance has now shifted from sideways to up.So, if you think MGM stock remains above $16 for the next month, then sell the Sept. $16 put for around 70 cents. Wynn Resorts (WYNN) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade While not as impressive as MGM's performance, the 7.4% jump in Wynn on Thursday was still noteworthy. What I like about the rally is it's once again reaffirming $70 as a major support zone. It offers an obvious line in the sand for a stop loss to bail on bullish trades if it gets broken.Additionally, the flat moving averages make extremely bullish trades a low probability bet. At a minimum, we'd need to see prices rise above the 50-day before getting overly aggressive. But if $70 is going to hold firm, there isn't any reason why we couldn't build a neutral to slightly bullish options trade.In situations like this, I like call diagonal spreads.The Trade: Buy the Sept. $75 call while selling the Aug. $80 call for a net debit of $5. * 8 Coronavirus Stocks That Are Still Going Strong Consider stopping out on a close below $70. Shoot for $100 to $200 as a profit target per spread. Gambling Stocks to Buy: Las Vegas Sands (LVS) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade The final pick of our gambling stocks trio is Las Vegas Sands. Its gain on Thursday was the least impressive of the three at 4.3%. Like WYNN, however, Thursday's ramp did reiterate the major support zone at $42.50 and could be the spark for a new advance. Since the shares are still below both the 20-day and 50-day moving averages, buyers have a lot of work to do before the overall trend turns higher, though.Overall, the beautiful thing about entering the trade near support is we only have a small amount of risk. In other words, we can jump ship quickly if the stock sours. The implied volatility is low enough (17th percentile) to make long premium plays attractive. I like bull call diagonals.The Trade: Buy the Sept. $45 call while selling the Aug. $48 call for approximately $2.35.Use a break of $42.50 as your stop loss. For a target, shoot for $50 to $100 per contract.For a free trial to the best trading community on the planet and Tyler's current home, click here! At the time of this writing, Tyler didn't hold positions in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Gambling Stocks to Buy After Penn National Gaming's Earnings Pop appeared first on InvestorPlace.
Casino operator Wynn Resorts Ltd. took it on the chin in multiple ways with the coronavirus pandemic. Its China properties were closed for a while along with those in the U.S. and the chart reflects the sentiment. The recent heavy turnover as the stock turns down is bearish, and with the indices near all-time highs this stock is near the March lows.
On Thursday, shares of Wynn Resorts (NASDAQ: WYNN) saw unusual options activity. After the option alert, the stock price moved up to $75.16. * Sentiment: BEARISH * Option Type: TRADE * Trade Type: CALL * Expiration Date: 2020-09-18 * Strike Price: $100.00 * Volume: 1622 * Open Interest: 92683 Signs of Unusual Options Activity Extraordinarily large volume is one indication of unusual options activity. Volume refers to the total shares contracts traded in a day when discussing options activity. Contracts that have been traded, but not closed by a counter-party, are called open interest. A purchased contract cannot be considered closed until there exists both a buyer and seller for the option.A contract with an expiration date in the distant future is another tell of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset."Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future.Understanding Sentiment Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price.Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity.Trading Options With These Strategies Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Earnings Scheduled For August 4, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.