The Tokyo Summer Olympics kicked off on Friday, July 23 – and it’s already been an event for the history books.
It’s the first Olympic games to happen amidst a global pandemic.
The first time karate, skateboarding, sport climbing, and surfing will be official Olympic events.
And the first year that Americans across the country can legally bet on the games, thanks to widespread legalization of sports betting.
Let’s put that into perspective: 23.2 million Americans bet on Super Bowl LV earlier this year, and the Olympics are, let’s say, a million times bigger than that.
They’re the biggest sporting event in the world – bigger than the NBA finals, the World Series, the World Cup, you name it.
So there’s no telling how much money could pour into sports bets – and, more importantly, sports-betting stocks – over the next couple of weeks.
Betting on these stocks could make you more money than betting on Simone Biles to take gold – and she’s the gymnast with the most gold medals in the world, so that’s saying something.
First up, let’s talk about Penn National Gaming Inc. (Nasdaq:PENN). PENN operates 44 casinos and racetracks in the US under the Hollywood Casino brand.
But it’s got a stake in the world of sports betting too, especially after buying Barstool Sports in a $450 million deal last year. Since then, PENN has focused on launching its sports-betting app in several states across the US.
And it’s a one-stop shop for many sports gamblers during the Tokyo Olympics in Pennsylvania, Michigan, Illinois, and Indiana, PENN’s four sports-betting markets.
Right now, PENN is about 50% off of its 52-week high of $142. But the demand for Olympic sports betting could send this stock back into triple-digit territory, especially as sports betting continues to be legalized across the US.
PENN is a great sports-betting stock to watch – but it’s not my favorite. Not from a trading perspective, at least.
That would be sports-betting operator Draftkings Inc. (Nasdaq:DKNG). Right now, the stock is around $49, and it’s set to report earnings on Aug. 6 before the market open.
I’ve got my eye on the August 6 $50 calls for a little over $2. This way, you can play the run up into earnings without having to wait and see what the report actually says.
DKNG is known to move $2-$3 easily. And earnings could help propel this $50-strike call even higher. I’d target a 100% gain on this trade, exiting for $4 or more if DKNG gets a pop.
If not, then I’d bail once shares tank below $48.
Remember – we’re after asymmetric returns. And I don’t want to lose any more than $1 to make $2. Risk less, make more – that’s the magic recipe of an asymmetrical trade.
Mark’s Monster Earnings Week Watchlist
Together, the following five companies make up 45% of the Nasdaq’s value. But that’s not all they have in common.
Each of them reports earnings this week – the biggest week of the season.
- Apple Inc. (Nasdaq:AAPL)
- Amazon.com Inc. (Nasdaq:AMZN)
- Microsoft Corp. (Nasdaq:MSFT)
- Tesla Inc. (Nasdaq:TSLA)
- Facebook Inc. (Nasdaq:FB)
There’s a ton of money on the line here. And we could see these names swing the entire Nasdaq-100 index in either direction…
Though I’m willing to bet I know just what direction that’ll be. And on Wednesday, at 11:30 a.m. ET, I’m going to break down each of these stocks – and where they’re headed after this monster earnings week.
I’ll even drop a new free trade to play post-report. It’s all happening right here – but be sure to sign up for Profit Takeover text alerts ahead of the event to receive any and all important updates.
But I won’t make you wait until Wednesday for all the details.
These stocks have had an incredible run higher the past few months. Since May, the Nasdaq-100 is about 16% higher.
But that success can’t continue forever. No matter how good these reports are, these stocks are going to sell off.
The money’s been made already – on the upside, that is. Be sure to tune in on Wednesday at 11:30 a.m. to catch all the details of a downside play.
For now, check out when each of these tech companies report:
TSLA: July 26 after market close (AMC)
AAPL: July 27 AMC
MSFT: July 27 AMC
FB: July 28 AMC
AMZN: July 29 AMC
VIX Traffic Light
Over the past five days, the VIX has fallen almost 20%. And I expect it to continue on the downtrend this week.
See, the VIX futures curve is in a pretty good contango:
There’s just one hiccup – see that gap between the cash index (green line) and the yellow curve? It’s pretty wide. To me, that means the next couple of days could be a bit choppy – but it’s nothing that worries me.
I think the VIX wants to head back down to 15 by the end of the week. And that’s why our traffic light is red today.
Today’s Impact Money Trade
Snap Inc. (NYSE:SNAP) reported earnings last week – a report that beat expectations and sent the social media stock more than 17% higher the next day.
And one big money trader is betting on a short-term floor:
Click To Enlarge
In the top equity trade so far today, someone sold to open a big block of over 42K August $58 puts.
Now, that’s a lot of money betting on SNAP. And I’m going to break down what this trade means – and how you can piggyback it – during tomorrow’s episode of Money Morning Live.
The show kicks off at 8:30 a.m. ET sharp. You can tune in right here!
I’ll see you then…
July 26 2021