Some bullish activity came across the tape today in BJK, the MarketVectors Gaming ETF, which is a fund comprised of companies that earn more than half their revenue in the gaming industry. This includes casinos, lottery services, racetracks, online sports betting and more. Perhaps some investors see opportunity for growth in the short term with the World Cup approaching and gambling increasing.
BJK is trading in the middle of its 52-week range and gapped up the better half of a dollar overnight and continued to rise this morning with strong volume. A bearish trend can be confirmed by looking at the chart, which shows a break above strong resistance this morning and a climb to well above the cloud, coupled with higher than usual volume.
Let’s take a look at a trade.
The Trade: Buying the BJK July 49-50 Bull Call Spread for $.35 debit
Risk: $35 per 1 lot
Reward: $65 per 1 lot
Greeks of this Trade:
Delta: Long
Gamma; Long
Theta: Short
Vega: Long