High beta names such a LVS and WYNN should do wonders in an up-trending market. I believe a covered call strategy on both names could provide some very good, low-risk returns. Both names are considered best-in-breed in the sector and their considerable exposure to China makes them attractive investments.
Since, we love options, I'll get to the point. Here's the trade:
LVS: Purchase the Jan 2011 $40 strike for $0.83c. I believe that this call will appreciate considerably as the stock moves towards $35/share over the next month or so. Another option is to create a spread by selling the $45 strike against it and picking up $0.30 cents in the process resulting in an overall cost-basis of just $0.53c for a possible ~ $4.50 return if the stock was to settle at or above $45/share by the end of Jan 2011.
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