The Top Three Winners & Losers of Omicron

Dear Reader,

The Omicron variant is quickly making its way through the US, infecting people in at least 16 states as of this week.

So why is the market recovering today?

As it turns out, Omicron isn’t like the “original” COVID-19. It’s not like Delta. Even though, when news of its existence first broke, the market reacted as if it was.

Now, Omicron actually seems like it could be a good thing.

It may be more contagious than previous variants – but it’s less lethal. In South Africa, where Omicron was first discovered, more people are getting sick…

But the number of deaths hasn’t increased.

This is what happened to the Spanish flu. Eventually, it mutated into a non-deadly disease. And Omicron could be signaling the end of the pandemic.

Now, it hasn’t been long enough for this data to be officially confirmed. But it’s all the market needed to jump back up – and now, I’ve got a whole new list of names on my Watchlist.

This is an absolute gamechanger.

Losers: The Stay-at-Home Trade

1. Zoom Video Communications Inc. (Nasdaq:ZM)

ZM was one of the biggest winners of the COVID-19 pandemic. So it only makes sense that it’ll be one of the biggest losers if the pandemic were to finally end. And this one’s fall from grace has already begun:

ZM 2020-2021

After turning from a $70 stock into a $500 stock in less than a year, ZM is back down in the $190s. So if you’ve got this one in your portfolio, be careful.

2. Peloton Interactive Inc. (Nasdaq:PTON)

The at-home exercise game is waning with the pandemic. People are done riding bikes in their basements – they want to return to the gym. And that much is evident when you look at PTON:

PTON 2021

PTON has seen a major dip this year. And if Omicron does turn out to be less deadly, then 2022 could be even worse.

3. Teladoc Health Inc. (NYSE:TDOC)

Are you starting to sense a theme here?

TDOC Nov-Dec 2021

TDOC plummeted 32% last month. And the telemedicine company is going to be in even deeper trouble if the rumors about Omicron are true.

Winners: Travel Stocks

1. Norwegian Cruise Line Holdings Ltd (NYSE:NCLH)

This is the news that could send NCLH back to $30 a share – a level it hasn’t been at since July:

NCLH June-Dec 2021

While ZM was one of the biggest winners of COVID-19, cruise lines were some of the top losers. But NCLH was a $60 stock before the pandemic – and I’m curious to see if it’s able to make it back there.

2. Carnival Corp. (NYSE:CCL)

Like NCLH, CCL has yet to return to its pre-pandemic price of about $50. But if the Omicron news is true, it could head back to $30 and beyond. And I’m ready to trade it when it does.

CCL has been a favorite of Profit Revolution members already this year. They had the chance to sell an 84-cent call for $1.60, $1.68, and $2.14. That’s three gains of 90%, 100%, and 155%, respectively, for an average of 115% in 17 days.

Want in on sub-$1 trades with profit potential like that? Join my live room – and you’ll get every single one of my asymmetric trade recommendations.

3. American Airlines Group Inc. (Nasdaq:AAL)

Just like cruise lines, airlines like AAL, DAL, LUV, and UAL are bound to see some serious upside if Omicron does indeed signal the end of the pandemic.

And we aren’t the only ones who think so.

Check out this big-money trade on AAL:

This is a put spread – but it’s actually a bullish trade.

Why? Because it’s a hedge against long stock. And if this trader was bearish on AAL, they’d just sell their stock.

But they don’t want to. Because, like us, they see the upside potential in an airline name like AAL. And this big-money trade just confirmed my bullish stance.

Sincerely,

Mark Sebastian
Founder, Profit Takeover

---

Comments