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VICI Properties: Making A Win-Win Bet

Mar. 29, 2023 3:41 PM ETVICI Properties Inc. (VICI)40 Comments


  • VICI Properties Inc. has remained resilient in the last year but has been slipping along with the broader markets more recently.
  • I've sold some puts, but even the current price would appear attractive to consider adding this name.
  • They've continued to grow their dividend, and with AFFO expected to continue growing, it would be anticipated that more growth is in the future.
  • This idea was discussed in more depth with members of my private investing community, Cash Builder Opportunities. Learn More »

Casino chip on the neon technological background.

Ivan Kuchin/iStock via Getty Images

Written by Nick Ackerman. This article was originally published to members of Cash Builder Opportunities on March 15th, 2023.

We recently sold some puts on VICI Properties Inc. (NYSE:VICI), and I believe that

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This article was written by

Cash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.

He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure: I/we have a beneficial short position in the shares of VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (40)

Cash Builder Opportunities profile picture
The puts sold, as mentioned in this article, ultimately expired worthless. I'm looking to reload the position potentially this week. seekingalpha.com/...
@Cash Builder Opportunities
What is reload in this case? What is your yield?
Cash Builder Opportunities profile picture
@katmandu100 by 'reload,' I simply mean just enter another short put position on VICI. The annualized rate on this specific trade was 17.16% or roughly 1.83% return in a 39-day period.

Also, now that cash pays something these days, that isn't accounting for that either. So while I sell cash-secured puts, the cash set aside is also earning around 4.5% from Fidelity. The downside to selling puts right now is the VIX (volatility measure) is flatlining, which means lower premiums for selling puts.
Cash Builder Opportunities profile picture
I would have posted a recap article of the trade as I used to do with some of the options trades publicly, but SA said their new policy is no options-focused articles anymore.
vitullijoe profile picture
stock price update 2/3 years?
Reduced my over weight VICI last bump up to 1+change% portfolio position. Took a nice profit. VICI has a little to "experiential" of a portfolio for me.

Happily Drippn my remaining position.
@cpr1200r100 Non-Indian gaming generated $43B in 2019 with most of it coming from Nevada. An all time high, despite Covid. In 2022, it topped $60B. Some people really like the gaming Experience!

Interesting anecdote, my niece's daughter is a volleyball player. Last month, and the month before, they played in tournaments at the Mandalay Bay Convention Center. Turns out MGM and Mandalay Bay hosted 850 teams from across the US. A big deal for kids looking to get recruited into college. Anyway, they loved the facilities, food and accommodations without any gambling. A different type of Experience not typically associated with Las Vegas.

I was hoping that we would see better entry points in the upcoming recession but finally gave in. They have 1% of my portfolio as well.
The Dividend Collectuh profile picture
Love VICI along with NNN 💰😎📈
Cash Builder Opportunities profile picture
@Dividend_Collectuh very nice! I'm long NNN as well. A boring REIT, but that is its appeal.
As far as I am concerned, the current share price, though somewhat higher than when I bought in, is still a good deal. And I plan to buy another 15-20 shares in the next few days.
Cash Builder Opportunities profile picture
@William Cohen thank you for sharing! I do agree it is quite attractive.
Exited CBRE today (can't fight sentiment) and added a little to VICI. Not splitting hairs on entry price as I hold long. Slowly building a position, now have 2 of 3 lots.
Cash Builder Opportunities profile picture
@user1416 thank you for sharing! Good luck with your position.
Bucknfl profile picture
I was going to add a few more shares of VICI when it recently dipped under 30 but I got greedy looking for it to go to 28 & it bounced back before I could buy.
Income4ever aka Cyclenut profile picture
Happens to me all the time :)
How many days before the strike price you initiated the option?
Interesting data and commentary
Cash Builder Opportunities profile picture
@katmandu100 it was 39 days out when I originally wrote the puts. Thanks for reading!
@Cash Builder Opportunities

Thank you for the reply.
Income4ever aka Cyclenut profile picture
Excellent commentary and analysis Nick
Vici Ceo Ed Potonik and team are rapidly positioning it for further development and expansion in Europe, Australia and Asia so continued growth will not be a problem.
Vici went in 5 years where O took nearly 55 years to achieve in respect to market cap.....

Long Vici
Cash Builder Opportunities profile picture
@Income4ever aka Cyclenut thanks for your input! Glad to hear you are positive about this name as well.
Which seems a better long term play: VICI vs GLPI? Thank you for your perspectives.
Cash Builder Opportunities profile picture
@kalu0003 good question! However, I'm not familiar enough with GLPI to have a strong opinion. I've always leaned towards following VICI, and that's the one I've kept up on in terms of the financials.
Mo_Hawk profile picture
Iam fine buying more at current price level 31,7€ 🤘
Cash Builder Opportunities profile picture
@Mo_Hawk fair deal! Thank you for sharing your input!
Bossco profile picture
$30 strike price met 🤑

Long VICI.
Bossco profile picture
@Cash Builder Opportunities Thank you for sharing, as even 2 weeks later is better'n nothing. 😁
3/24 was a good buy day!
Cash Builder Opportunities profile picture
@Bossco indeed! If something massive had changed, I would have edited the article to reflect such an event, but it still seemed like some valuable information that readers could benefit from.

I agree with you, too; it would have been a great price. While I'm writing puts, if something drops far enough, I'll end up buying shares directly anyway. I won't let too good of a deal go by! Then I'll adjust the puts and roll if it seems necessary.
Puche profile picture
Enjoyed the article. I've been using a somewhat similar strategy on VICI to drive my total return higher. I've been selling naked puts when the stock drops to $30 and selling covered calls when the stock breaks $35. The strategy has allowed me to build a nice size position at a nice average price and at the same time drive my total returns higher by pocketing some solid premiums.

I agree VICI is one of the better REITs with a solid management team. I've been parking money in the stock starting in Q4 2021. I nice place to hide out get some solid returns.

Thanks for sharing your views and providing some solid thoughts on the stock.

All just my two cents. Slow and steady! Good luck to all!
Cash Builder Opportunities profile picture
@Puche thank you for taking the time to share your input! It's appreciated - sounds like you have a solid strategy going on!
villainy profile picture
Fair enough. I use my PRIMP method. Premiums Re-Invested in My Position. In other words I take the premiums from selling puts and or selling calls and buy shares with them. Add to that DRIP dividends and your position can grow pretty fast.
Puche profile picture
@villainy no doubt I DRIP all dividends when possible. In addition, as the SA community knows, I’m a long term investor. As such, I tend to buy a stock on a regular basis (every other month, quarterly, etc) while I’m accumulating it.

VICI is a parking stock and not a stock I’m looking to accumulate over a 10 or 20 year period. As such, I park money over a short period and use VICI for overall income returns while I look for better LT investment opportunities.

Just my two cents. Slow and steady! Good luck to you!
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