Jon Najarian Is Betting on Casino Stocks
Trader Jon Najarian on Thursday said he’s betting on casino stocks, especially Las Vegas Sands . The Las Vegas-based company owns and operates casinos and resorts in the United States, Macau and Singapore.
“I love this stock . Love the upside potential for both Singapore and Macau,” said Najarian, co-founder of OptionMONSTER.com. “I would use sell-offs like this to load up on more.”
LVS has a double bottom at the $37.50 level, Najarian said. So he would buy shares should it fall to the $40 level, but as with all of his trades, Najarian recommends using options. He said an options strategy allows the investor to hold onto the stock longer, especially when the market gets volatile.
Mike Khouw of Cantor Fitzgerald noted the gaming are highly levered, so any bad news will hit them hard. That being said, he agreed with Najarian that options is the best way to express a bullish view. There was heavy trading of near-dated, upside calls in LVS Thursday.
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CNBC.com with wires.