Is Caesars Entertainment Stock Worth the Gamble?

Consider betting on CZR as a recovery play

facebook twitter linkedin

The shares of Caesars Entertainment, Inc. (NASDAQ:CZR) have been chopping lower on the charts over the last few months, despite the casino name announcing a multi-year partnership with the Buffalo Bills last week to make Caesars Sportsbook an official mobile sports betting partner. 

The security has been chopping lower since hitting an Oct. 1, record high of $119.81, culminating in a Jan. 21 annual low of $72.72. Shares also breached a recent floor at the $84 level, and sank further below the once-supportive 320-day moving average. In the last three months, CZR has shed roughly 35%.

CZR 320 Day

Options traders have been more bullish than usual, however. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CZR's 10-day call/put volume ratio of 4.20 stands higher than 88% of readings from the past year. This means calls have been outnumbering puts on an overall basis.

From a fundamental point of view, CZR does not provide a great level of security or stability for investors. The casino company’s balance sheet holds just $2.66 billion in cash, as opposed to $26.93 billion in total debt. 

However, Caesars Entertainment stock has forward price-earnings ratio of 35.59, indicating an expected shift into profitability. Plus, the company has maintained strong top-line growth, increasing revenues a whopping 309% since 2018. Moreover, CZR is expected to increase revenues in 2022, setting it up as a decent recovery play.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners