New Money Link Trade Alert:
Hey guys,
I’ve got a new core portfolio trade for you this morning!
But first, let’s exit the following core portfolio trade before jumping into the new one.
For the stocks, let's:
SELL TO EXIT JPM AT $156.50 OR HIGHER.
BUY TO COVER HSBC AT $32 OR LOWER.
And for options, we'll:
SELL TO CLOSE JPM 05/21/21 C150 AT $7 OR HIGHER.
*KEEP HSBC OPEN, AS MOST OF THE VALUE HAS ERODED
And now, for our new core portfolio trade, let’s:
BUY DKNG AT $55 OR LOWER.
SELL TO SHORT MGM AT $38 OR HIGHER.
And for an options play:
BUY DKNG 06/18/21 $50 CALLS AT $8 OR LOWER.
BUY MGM 06/18/21 $40 PUT AT $3.50 OR LOWER.
This is a Money Link I’ve traded before, and it’s now at the perfect entry point to get back in. DraftKing is the heavyweight champion of online sports betting in the U.S., while MGM Resorts International loyally remains a bricks-and-mortar company in the Las Vegas Strip. In a way, this has become a reopening trade that has gone against the longer term money link flow out of MGM and into DKNG. But the trend is still perfectly intact — with more and more states legalizing online sports gambling.
