The streaming or "cord-cutting" market is starting to look increasingly bullish. And furloughs from a pandemic have been a big part of that.
As we watch COVID-19 case numbers tick upward again, we can expect more power from the streaming market. This is driving our best options trade today. But maybe not in the way you think...
Binge watching probably saved a lot of people from climbing the walls for something to do after hours. Sports were closed. Theaters were shut. Even going out for a meal was highly restricted for a long time.
Travel holidays with family and friends, for many, became streaming a favorite Netflix Inc. (NASDAQ: NFLX) series, even if it meat doing so remotely.
A notable harbinger in the streaming movement has been Walt Disney Co. (NYSE: DIS). The company has suffered from travel restrictions and closure of its parks. But at the same time, Disney's streaming service has helped the company land on its feet.
No matter how many theme parks Disney was forced to shut down due to COVID-19, it had a safety net in Disney Plus.
The service was unveiled in fall 2019. It added 60 million subscribers in the second quarter of this year - just when the pandemic was starting to wreak havoc on the economy and on the people.
The crazy thing is... that 60 million was the company's goal for 2024.
When a company is four years ahead of schedule, you know the business is a monster. Next year promises to be even bigger. Here's what's pushing our best options strategy now...
What Makes Streaming Different in 2021
Disney was not alone in its success this year.
Netflix Inc. (NYSE: NFLX) ended the same quarter with almost 200 million subscribers. ViacomCBS Inc. (NYSE: VIAB) is growing, featuring a 25% increase in domestic streaming and revenue over the same quarter in 2019. AT&T Inc. (NYSE: T) and NBCUniversal are still in the early stages of their streaming plans.
Must See: He lost everything and fled to Thailand. Two years later, he had $5 million to play with - all because of this one strategy.
Growth potential here is nothing short of spectacular. And that's why options trading in the streaming market looks more and more promising to investors.
But the industry is starting to get really crowded now as it matures, and it has likely entered a "tipping point." This means there isn't just one options strategy here.
Sure, you could go bullish and look for call options on DIS or NFLX to appreciate. But you could also buy put options on their competition.
Money Morning Quantitative Specialist Chris Johnson already sees where some of these competitors in the entertainment space are going to be pushed out. He has identified the huge profit opportunity that will mean for you.
Our best options trading strategy today is a play on an enemy of the streaming market. Here's how you can profit from its demise...
The Best Options Trade Now
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Chris is bearish on DISH Network Corp. (NASDAQ: DISH), practically calling it a technological dinosaur.
Satellite television services are last cycle's innovation. They're now getting swallowed up by online streaming.
Think about it. You cannot take a physical satellite dish with you as you move around your day. Cell or Wi-Fi connected to the Internet are both more convenient and cheaper to install.
There has been little growth, as DISH's revenue in the second quarter, when the industry kicked into high gear, was just about unchanged from the same quarter in 2019.
The company may have mistimed public sentiment, too, with its renewed deal to carry NFL programming. This year, NFL viewership is significantly lower than last year's pace, which was exacerbated by game postponements due to players testing positive for the coronavirus. It clearly did not help that winter-spring sports were still having their title games after postponed and shortened seasons.
The stock price is already reacting, after stalling in its recovery from the March market bottom, then breaking down from its June--early September range. It looks to keep falling, too, as measured by technical indicators - money is fleeing the stock.
Downside momentum for its shares is growing. Chris recommends a bearish trade on DISH, as follows:
Buy to open DISH March 19, 2021 $27.50 puts (DISH210319P00027500) using a limit order of $4.
With an expiration in March of next year, this out-of-the-money put option is low-priced. That means it has the potential to make serious gains with only a few dollars of decline in the stock.
Millennial Millionaire's One-of-a-Kind Trading System
It's been generating money hand over fist since the recession of 2008... and now, he's finally sharing the secret!
Investors in today's economic climate need every advantage they can get, and I don't think I've ever seen a strategy more powerful than this.
Click here for the full story and the next three plays he has his eye on.