Shorting the Online Gaming Stocks

[gonebroke2]

I had similar thoughts as you did. The only problem was that I was not familiar enough with the London Stock Exchange to make the necessary transactions. I don't even know what type of options they trade over there. Assuming the setup is the same as the USA in terms of options, a perfect hedge would have been to allot one or two months poker profits on PUTS on the major online gambling stocks trading in London. If the law didnt make it through, you are going to lose it all because the stocks would skyrocket. If the law gets passed, then you clean up bigtime because the stocks will get clobbered. You might even make enough to equal several years of future poker profits. Contrary to what the previous poster stated, these stocks are not thinly traded in London.

I would not short the stocks outright because you are not going to make enough on the downside because the leverage is small when compared to buying PUTS. Furthermore, you would get murdered if the law didn't pass because the stocks would go bonkers to the upside.