NFL ratings are struggling right now, as President Donald Trump continues to stoke the abandon of a impassioned discuss over inhabitant anthem protests, while the tangible on-field product has also left something to be desired.
But fear not, football fans — JPMorgan knows how you can make a flattering penny off the league’s woes.
It involves making a short-term gamble that shares of CBS will drop. The most-watched US radio network and home to mixed games a week, CBS serves as a bellwether of sorts for NFL viewership.
JPMorgan privately recommends purchasing weekly put contracts that will start making income if CBS shares decrease roughly 1% to $57.50 by death on Oct 6.
While it’s still too early to know if Trump’s inflammatory comments and the daring league-wide response will have a element impact on ratings, this week’s arriving line-up of games could yield a much better idea. As such, JPMorgan total it can’t harm to be prepared in the eventuality of a major downswing.
“Any intensity NFL protest is some-more likely to be dynamic in this weekend’s results,” Shawn Quigg, an equity derivatives strategist at JPMorgan, wrote in a client note. “Investors likely could bring the anthem discuss for any diseased viewership results, adding to existent viewership concerns. Thus, the larger reward-risk appears lopsided to the downside in the near-term as weaker results may muster investors to take the intensity impact some-more seriously.”
For an instance of how fast NFL dynamics have shifted given protests have gotten some-more widespread, JPMorgan cites the spike in jersey sales for Pittsburgh Steeler descent lineman Alejandro Villanueva. He was the only Steeler on the field for the inhabitant anthem this past Sunday, and the organisation says that may advise fans preference it when players mount for the anthem.
While that’s positively a lot to extrapolate from one instance, making JPMorgan’s suggested options peril could compensate off even if ratings decrease for other reasons. After all, even before the series of protests grew this past week, there were already worries that disappearing viewership could bushel future profitability for NFL TV partners.
CBS shares rose 0.6% to $58.35 at 2:29 pm EST.