What's the idea? In his recent speech, Federal Reserve Chairman Jerome Powell said that the central bank would base its interest rate decisions on macroeconomic data and not on the upcoming presidential election. It seems that today's data are favorable for the start of monetary easing. While the market has been expecting rate cuts for a long time, current economic data finally reflect a real slowdown in inflation and rising unemployment. At least one rate cut is expected in 2024 and this trend is likely to continue into 2025. One of the easiest ways to capitalize on interest rate changes is to invest in long-duration bonds, although building such a portfolio can be costly. For investors willing to speculate on interest rates for higher returns, we recommend buying CALL options on iShares 20+ Year Treasury Bond ETF with a strike price of $94.0 and expiration date of 20/06/2024. The option will cost around $5.50, while buying one contract will cost $550 as options are traded for 100 shares.

What's the idea? The crude oil tanker market is expected to face heightened demand and longer routes as a result of geographic demand-supply differences among regions. Another current driver is political instability that reshuffles global fleet routes and contributes to growth of needed charter times. As the average mileage remains at historic highs, oil tanker companies’ revenues will benefit. Supply of oil tankers remains rigid due to price rise and length of investment cycle in the ship construction industry. The aging fleet contains supply growth as well. Northern American has a strict specialization on Suezmax-type vessels, which contains its operational and maintenance costs and provides operational flexibility. The company targets regular dividend payments, despite its inherent business volatility and manages to pay dividends even in the negative-EPS years.

What's the idea? Deutsche Lufthansa AG is one of Europe's leading airline groups. In addition to its own brand, Lufthansa Airlines, the group owns several other airlines, including SWISS, Austrian Airlines, Brussels Airlines and Eurowings. Air passenger transport in the EU reached 976.4 million passengers in 2023, up by 19% year-over-year (YoY). However, the figure remains 5.7% below the pre-pandemic level in 2019. In 2024, passenger traffic in European airports may surpass the 2019 level by 3.2%. Operationally, Lufthansa faced challenges in Q1 2024, including widespread strikes. Nevertheless, traffic revenue in the Passenger Airlines segment increased by 7% YoY, driving total revenue up by 5% to €7,392 million.

What's the idea? Tourist traffic to Macau continues to grow, with 57% more passengers traveling on the Hong Kong-Zhuhai-Macau route in the first five months of 2024 compared to the same period last year. On 30 June 2024, the Chinese authorities opened a bridge between Shenzhen and Zhongshan in Guangdong Province, improving accessibility to Macau from mainland China and boosting the economic prospects of the Greater Bay Area. Las Vegas Sands exceeded its Q1 2024 guidance on key financial metrics. Given the positive passenger traffic dynamics in Macau, this scenario is likely to be repeated in Q2, which could lead to a positive revaluation of the company's shares. We recommend buying CALL options on LVS stock with a strike price of $45 and an expiration date of 20/09/2024. The option will cost around $2.70, while one contract will cost around $270 as options are traded for 100 shares.