I am in London, watching the Olympics on big screens. The powers that be have empty seats and thousands of unsold tickets — but will not sell me one. I am not British.
What has happened of importance to investors is the games are rubbing off on the market, helped by some unexpectedly good earnings from travel companies. This happens every time the Olympics hits the headlines. For some reason traders get all excited and push travel stocks up. I expect these companies numbers to come down over time but right now the stocks are moving.
One such outfit is Las Vegas Sands (LVS). The stock hit a bottom a few days ago and is now climbing. What to do for some quick cash? Take a look at selling some close in weekly puts – the $36 or $35. I would not sell the $37, if you get put the stock; well, I am not bullish on the company past the weekly enthusiasm for the Games and the very-short-term chart.
The other play based on traders’ irrational exuberance — where I have heard that term before? — is Nike (NKE). The company has a lot of feet in these Games and, conveniently, the stock is trading in a very tight trading range. Look at the next strike down to sell a put. The premiums are pretty rich.
And if anyone out there has some tickets to sell, shoot me an e-mail at [email protected].