Seeking Alpha
What is your profession? ×
Stock and Options Newsletter, Teaches Hedging Strategies, Smart Portfolio Management
Profile| Send Message|
( followers)
Trump Entertainment Resorts (TRMP) is a company I never bet against, but the New Jersey government is shutting down, and they in turn will shut down casino operations in the state as there will be no one to regulate them. Every day that happens is a million dollars (1% of profits) that Trump will never recover and, even if the budget crisis is solved, increased sales tax or other tax concessions will worry investors as core customers may be forced to cut back slightly.

The Jan $20 puts are a little pricey at $2 but they should degrade slowly enough to let us out if the stock crosses the 50 dma of $20.35.