CZR has shed roughly 35% over the past three months
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%.
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.