If revenge travel sentiment is fading, that might not be great news for theme-park operator SeaWorld Entertainment (SEAS). Even worse, major options traders – the so-called smart money – appear to be sensing brewing troubles for SEAS stock and the broader entertainment landscape, warranting a cautious approach.
On a purely cynical basis, the COVID-19 crisis offered a lucrative bounce-back opportunity for speculators. To be sure, the sudden loss of market demand when the pandemic first capsized western economies clearly represented a negative event – there’s no polishing this ugly mess. However, SEAS stock eventually regained its early February 2020 form and then some.
