This Stock Just Won the Super Bowl
The Super Bowl is now over…
No more hype…
No more love stories…
No more endless pre-game coverage…
As I’m sure you know, the game ended up being exciting…
But, it started off boring.
The score at halftime was 10-3.
Only one touchdown – and two field goals.
Travis Kelce had 1 catch… for 1 yards.
And for this reason, I believe that the sportsbooks cleaned up.
Since becoming legal in 2019, Super Bowl betting figures have gone higher and higher.
- In 2022, 31.4 million adults bet a total of $7.61 billion
- In 2023, 50.4 million adults bet a total of $16 billion
- And here in 2024, 68 million adults bet a total of $23.1 billion
With a record high amount of money at stake – what would a low-scoring game mean to betters – and also to Las Vegas?
Well, I’m sure you know…the house always wins.
This case is no exception.
You see, there are basically three types of primary bets on a game between two teams:
The Money Line (ML): This is a simple bet of which team will win. Nothing more. Just pick the winner.
The Spread: This is a weighted bet of which team will win – and by how much. The team that’s favored gets the spread amount subtracted from the final score – while the team that’s the underdog gets points added to their final score. The winning bet is the final score adjusted for the spread.
The Total: This is commonly referred to as over/under (or O/U for short). This bet only cares about how much – or how little – scoring happened between the two teams. A bet on the over (O) means you think both teams will combine to score more points than the total listed. Conversely, a bet on the under (U) means you think there will be less scoring than the total listed.
Now here’s the important part…
Generally speaking, the betting public loves betting the OVER.
And, with such an uneventful first half, I happen to think that bookies will emerge as the big winners from this game.
That’s why I believe the big winner from yesterday will be DraftKings (DKNG).
YOUR ACTION PLAN
With a first half that offered very little scoring or offense, this clearly equated to a win for sportsbooks like DraftKings. When the news comes out about how the betting results look – it would be smart to have a position in DKNG. After all, in a study of 18,000 loyalty card holders at U.S. casinos, only 13.5% ended up winning money. Apply that ratio to the 68 million adults who bet a total of $23.1 billion on yesterday’s Super Bowl, and that’s quite a big payday for DKNG.
To see how we’re trading DKNG, you’re invited to join us inside The War Room. Details below:
MONDAY MARKET MINUTE
- Earnings Dip-Buy Candidates: Last week, some strong names dipped on earnings. They both could be buyable this week. They include…
- McDonalds (MCD): When you have a name that’s returned 15% annualized over the past decade, a slight earnings dip could be buyable.
- John Deere (DE): Before the open on Thursday, we have earnings from Deere. We could add a cheap put to make this into an earnings strangle. But, we could see an upside move heading into earnings, as both heavy-machinery plays Caterpillar (CAT) and Cummins (CMI) popped on strong earnings.
- Amgen (AMGN): After dropping over -$30.00 last week, we could have a strong buy opportunity in the biotech company. To see exactly how I plan to potentially trade this stock, click here to join The War Room.