Will Casino Stocks Crap Out in 2013?
No need to hurry or rush to the tables though. The current chart pattern is a bearish trend and $30 is the next major support area. I don't expect $30, but $35 is not off the table. September $34 strike put options are attractive at $1 per contract this week. (Read my article Can 'Big Coal' Dig Out of its Hole?.)
If LVS does continue falling and an option writer was exercised, the cost basis for shares is only $33. Selling puts mitigates risk, pays you for your time and if The Sands doesn't fall enough to get exercised the return is 3% for a holding period of 60 days.
At the time of publication, the author held no positions in any of the stocks mentioned.
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