Regular people are starting to trade like institutional traders-and they're making a living doing it. But not everyone is successful with their trades. There is a right way and a wrong way. I'm here to help you come up with vetted trade ideas so you actually make money off your trading.
Resilient Trader is Where Smart Traders Come for Vetted Ideas.
This week, we’re turning our attention to Caesars Entertainment (CZR) - a name that’s been beaten down but has all the ingredients for a powerful rerating.
The stock is trading near support, its digital segment is about to turn profitable, and the market is still too focused on old debt and outdated assumptions.
Let’s break it down.
🔍 Trade Thesis: CZR - When the House Is Mispriced
Wall Street’s bearish consensus is missing three big shifts:
US gaming revenue is holding up stronger than expected
Caesars Digital is approaching profitability ahead of schedule
CZR is evolving into an omni-channel machine - and it’s not priced like it
This isn’t just a Las Vegas story. Caesars is diversified across 18 states and multiple verticals - from premium resorts to online gaming and managed properties.
And right now, it’s significantly undervalued on nearly every metric that matters.
💰 Fundamentals: Stronger Than They Look
Caesars has four growth engines:
🎰 Regional Casinos - Stable revenue + margin upside
🌆 Las Vegas Strip - Convention-driven upside + strong traffic
📱 Caesars Digital - Fast-growing online betting, near profitability
🏢 Managed Properties - Fee-based cash flow with low overhead
Recent signs of strength:
🔺 Margin Expansion - EBITDA margins improving from cost discipline
📈 Revenue Strength - Las Vegas visitation is rising
💻 Digital Momentum - Expanding reach + cross-platform acquisition
📉 Debt Reduction - Progress on deleveraging = stronger balance sheet
🧭 Technicals: Signs of a Bottom
📉 $CZR ( ▼ 0.1% ) down 33.6% in the past year
📊 Trading below the 50-day ($27.23) and 200-day ($33.79) moving averages
📍 Support Zone: $24-$25
🆙 Breakout Level: $33.19
🔄 Flat 50-day MA - starting to curl up
Volume is stabilizing. Selling pressure is fading. This could be a bottoming formation.
🎯 Catalysts: What Could Trigger the Move
🟢 Digital Profitability - A break-even quarter would be a big re-rating moment
📈 Margin Expansion - Operational gains still underappreciated
💳 Debt Reduction - Lower interest expense = multiple expansion
🎮 Omni-Channel Strategy - Cross-selling between digital and physical gaining traction
💬 Analyst Upgrades - Bearish coverage could flip if Q3 surprises
🏛️ Valuation: Discount to Reality
Caesars is trading like it’s a one-trick casino pony.
But break it into parts, and you see:
🧱 Hard Assets - Strip and regional real estate alone justify a higher valuation
💻 Digital Arm - Still getting little credit despite huge growth runway
🔁 Loyalty + Brand - Not reflected in current pricing
📊 Sum-of-Parts = 40%-60% upside if rerated properly
🎲 The Trade
Stock Purchase
🎯 Buy CZR at $25.94
Options Trade:
📆 Buy Dec 19 $31 Call for ~$2.10
Risk/Reward Profile:
📈 Break-even = $33.10
💸 Max Risk = $2.10 per share
🚀 Upside at $40 = $6.90 profit (328% return)
Manage risk with position sizing. Let the catalysts play out.
🧠 Final Thoughts
Wall Street is still stuck in 2022 thinking. Caesars isn’t.
With a digital arm nearing breakeven, a cross-platform strategy working, and margin expansion already underway, this is a company in transition - and the market hasn’t caught on.
It’s rare to find a casino stock this hated with this much upside.
💸 Action Steps
Buy CZR stock around $25.94
Aggressive accounts: Buy Dec 19 $31 Call for $2.10
Want more trades like this - and weekly options setups with defined risk and institutional edge? Paid subscribers received a DLTR trade idea yesterday and that stock is up 9% today.
👉 Join the Paid Resilient Trader Newsletter
Unlock exclusive trades, charts, and setups before the crowd catches on.
Stay Liquid,
- The Resilient Trader
