Morgan Stanley Stocks to End The Week

In fact, today we’re actually going to talk a little bit about hedging bets, the pros and cons of doing so, and what it could mean for your trading and/or investment career.

While buy-and-hold investing can be considered boring and high-risk to many individuals, long-term investment strategies aren’t limited to buying a stock or shorting a stock, holding it for two years, and closing out.

Ticker Code Ticker Name Ticker Industry Price Change Average Volume (50)*
DIS Walt Disney Co Entertainment 8.50% 20,703,021
WYNN Wynn Resorts, Limited Resorts & Casinos 24.38% 7,145,359
RHI Robert Half International Inc. Staffing & Employment Services 16.41% 1,935,641
NCLH Norwegian Cruise Line Holdings Ltd Travel Services 8.67% 42,851,645
PG Procter & Gamble Co Household & Personal Products 1.93% 11,776,921
LUV Southwest Airlines Co Airlines -39.92% 21,773,773
BABA Alibaba Group Holding Ltd – ADR Internet Retail 1.02% 16,633,716
F Ford Motor Company Auto Manufacturers 0.82% 102,699,950
DSS Document Security Systems, Inc. Specialty Business Services 97.77% 7,834,881
COST Costco Wholesale Corporation Discount Stores 6.51% 3,655,699
MARK Remark Holdings Inc Internet Content & Information 58.06% 22,032,224
AAPL Apple Inc. Consumer Electronics 16.28% 42,131,255
BA Boeing Co Aerospace & Defense -15.93% 40,570,122
SHOP Shopify Inc Software – Application 42.31% 3,906,923
GRUB GrubHub Inc Internet Content & Information 9.27% 3,413,292
ETSY Etsy Inc Internet Retail 49.81% 4,416,265
DAL Delta Air Lines, Inc. Airlines -31.60% 60,357,818
BBY Best Buy Co Inc Specialty Retail 25.25% 2,755,894
BUD Anheuser Busch Inbev NV Beverages – Brewers -3.98% 2,774,259
SPXC SPX Corp Specialty Industrial Machinery 12.56% 343,345

One can also place hedged bets using options spreads with expiration dates as far as two years out from now – more on that to come – but in the world of passively trading blue-chips, it’s a strategy which has increased in popularity ten-fold over the last few years.

What placing an options spread does is reduce your acquisition cost (options are less expensive than blue-chip stocks), and protect your downside from a total loss… that is unless the investment firm you’re doing business with “forgets” to protect the downside for you.

That’s exactly what happened to a select group of traders and investors in Wynn Resorts (NYSE: WYNN) through its recent 76% decline through the coronavirus pandemic.

As a result, Klayman Toskes has launched an investigation focusing on full-service brokerage firms, many of which failed to supervise the management of positions on Wynn Resorts in particular for their clients.

As an unfortunate result, multi-million dollar losses have been reported by retail investors.

But that doesn’t mean we can’t take advantage of Wynn’s current price action for a short term trading opportunity to wrap up the week…

As displayed on the chart above, WYNN is currently trading above $80/share support.

Should WYNN hold $80/share support into today’s opening bell, I’ll plan on making a bullish trade with the simple goal of stretching my position for maximum profit potential, to be paid in full by the end of the trading day.

Happy trading and I hope you’ve had a great week!

Yours for TrackStar trading,

Davis Martin
America’s #1 Premarket and Day Trader

Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.