Caesars Entertainment is up over 400% in the last nine months
Caesars Entertainment, Inc. (NASDAQ:CZR), formerly Eldorado Resorts, Inc., is an American hotel and casino entertainment company based in Reno, Nevada. Eldorado Resorts acquired Caesars Entertainment Corporation and changed its name to Caesars Entertainment in July of 2020, making it the largest casino-entertainment company in the U.S. Caesars Entertainment operates more than 50 properties and owns some of the biggest gaming brands. Some of these brands include familiar names such as Caesars Palace, Harrah’s, Horseshoe, Silver Legacy, Circus Circus Reno, and Tropicana.
CZR's 2020 start looked like a lot of others, complete with multi-year lows in the spring and record highs in the winter. The stock is up 410% in the last nine months, carving out a channel of higher highs with support in place from its 80-day moving average.
Now seems like an opportune time to weigh in on CZR next move with options. The stock's Schaeffer's Volatility Index (SVI) of 55% sits in the extremely low 14th percentile of its annual range, meaning the equity sports attractively priced premiums at the moment.
Caesars Entertainment's major moves over the past 12 months elevated investor excitement around the company. However, it remains a fact that Caesars took some incredible losses in 2020 as a result of the COVID-19 pandemic. The company reported over $1.2 billion in net losses over the past 12 months, which is about four times greater than the combined net income Caesars earned between 2017 and 2019. The company also carries $27.82 billion in debt and just $1.04 billion in cash.
On the positive side, Caesars somehow managed to grow its annual revenue production in 2020. Prior to last year, the company had grown its annual revenues by about $500 million every year from 2017 to 2019. Overall, it will take Caesars years to recover its fundamental position, but has a strong likelihood of a comeback even stronger than it was before the pandemic.