Coronavirus stocks to watch – MGM Resorts International (MGM)

Disclaimer: Please use the information here for entertainment purposes only as we are not financial advisors. Trading involves financial risks and we are not making any recommendations or responsible for any loss.

What happened to US stocks when the coronavirus had spread out of China and into the United States? We will discuss a few stocks that were affected by the coronavirus along with some trading strategies you can employ to possibly profit from this event.

It’s Chinese New Year and millions of Chinese usually travel to play games at the casinos in Macao. However, we also have the coronavirus making headlines that it can transmit through the air, would you risk going to these crowded casinos? Or would you perhaps enjoy playing the casino games online instead?

Children's n95 anti-viral masks
Are your children protected?

If you and your family are planning to go into crowded places, make sure you are protected from the coronavirus with these anti-viral masks! For you and your children.

This thesis of the coronavirus is what had driven the casino and hotel stocks down in the US. Many of these stocks have priced in the 10 day holiday that millions of Chinese will be taking. When the CDC (Center for Disease Control) had announced that the coronavirus was airborne, each of the stocks we have listed here began dropping.

The 3 US casino stocks that were impacted by the coronavirus were: MGM Resorts International (MGM), LVS and WYNN.

MGM Logo

As we look at MGM’s charts in 3 different timeframes, it is apparent that the stock was embarking an uptrend but the bad news had triggered a sell-off.

MGM Stock 2 hour Chart
MGM International 2 hour chart selling off with coronavirus news

Disinfect Your Phone Now!

Sanitize your cellphone
Kill viruses and charge your cellphone at the same time!

According to the CDC’s (Center for Disease Control) emerging infectious disease article, the cellphone in your pocket or purse is a medium where multiple strains of bacteria and viruses live. With the flu outbreak, please consider getting a UV sterilizer to disinfect you and your children’s phones. This particular model doubles as a wireless charger for your phone. Wiping it down doesn’t kill the germs on it!

MGM Stock Daily Chart
MGM Daily Chart in Uptrend interrupted by the virus

MGM Weekly Chart
MGM Weekly Chart pausing with coronavirus news

How to position for MGM and coronavirus?

We will need to formulate an outlook for the coronavirus to answer this question. A short term bearish and longer-term bullish or neutral view paints a picture that the virus will cause havoc in the short term and our scientists will come up with a vaccine or be able to contain.

FIND THE BEST AIRPORT PARKING OPTIONS. Compare parking lots, rates, info and reviews. Only At Shop Now!

We have observed a support range around the $30/$29 areas.

Stock Options

An option strategy may be to purchase the $30 put options or create a spread with at least a 1 to 1 risk-reward ratio. Your option position will appreciate in value as the stock tumbles in the near term.

You may also consider purchasing a call option to capture gains when the situation is under control.


If you belong to the pandemic armageddon camp, in which this virus will hinder travel around the world for many years, then a put option below the support level may be more cost-effective. This approach is suitable for the long term bearish outlook.

How would you play MGM with the coronavirus news? Please share some comments with us below!

Click here for coronavirus vaccine stock ideas.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at

Up ↑

%d bloggers like this: