The markets are pushing higher Monday after Astrazeneca and Oxford University bragged that their new vaccine showed efficacy rates of 90%.
Dow Futures added 200 points, while the S&P 500 added 19 this morning.
In a short week of trading, I’ll be looking to take advantage of any positive swings in optimism.
I’m especially paying close attention to pot stocks and alternative energy stocks this week. These areas will be filled with the most money-making opportunities, in my opinion.
So, let’s dive into my Monday outlook and a list of stocks to watch as we approach the Thanksgiving trading week.
On Monday, we’re facing a short week for the markets.
And with it comes heavy optimism about a vaccine. The rotation from growth to value stocks is picking up this morning. Shares of cruise lines and airline stocks are on the rise.
This optimism is overshadowing the news that we just saw another record high for virus cases. The U.S. saw more than 195,000 new cases on Friday.
Any increased shutdowns across the nation can have a negative impact on economic growth. But given that the markets are fundamentally disconnected from the underlying economy, it’s not worth overthinking.
The sentiment is driven right now by vaccine hopes, central bank liquidity, and expectations that a Biden administration will start dropping money out of a helicopter.
With momentum still very positive, I think I have a very good opportunity to continue a positive trend and make money off of other traders’ fears.
WHY I’M SELLING PUTS RIGHT NOW
Last week, I closed out several big trades. I let three Put Options trades expire on Friday. As a result, I walked away with THREE 100% GAINS.* Hard to beat that kind of result in this market.
I received a lot of questions in my presentation yesterday. And I’ll follow up today with some additional insight on my strategy and why it’s been so effective for me.
But let me start with a few key points.
- Writing (or selling) a put option makes it possible for me to own a stock at a future date at a much more favorable price. In essence, I’m setting a specific date on which I want to own shares of something and pick my entry price.
- When I write contracts and sell them, I generate income by collecting a premium. If the stock does not fall to that desired entry price that I picked by the expiration date, I get to keep 100% of the premium (unless I close the contract ahead of time).
- When you sell put options in stocks that you want to own, you are dramatically increasing the odds over time of creating a profitable trade. In addition to the income you’ll generate from selling puts, you’ll be able to own the stock you want to own for the long-term. Given the upward bias of the market in the long term, you’re able to lock in on your desired price, get your shares, and hopefully ride them to new highs in the near future.
In this market, it has been extremely successful for me, and I think you should learn how to utilize this to your advantage right now. I will teach you more.
MY STOCK WATCH LIST
PDFS: It is starting to look like positive momentum is returning to PDF Solutions after a multi-week lull. I’m intrigued that this stock pulled back in early November on vaccine news. Online documentation isn’t going away. Actually, it’s going to accelerate. So, I’m adding it to my list. I like the stock under $21.50, and I’m eyeing the puts around $20. A pullback might come due to broader market uncertainty. But this is a great company, and its balance sheet is incredible.
QTS: While everyone is getting excited about a vaccine, they’re forgetting about data centers. QTS Realty Trust has about 20% upside over the next few months. It has seen a wall of institutional capital rotate into the stock in recent months. I’ve also seen a lot of insider buying in recent weeks.
WYNN: Wynn Resorts is the ultimate vaccine stock right now. I still think the upside here is about $150. But investors must be patient. It helps that a 4.2% dividend waits right now. I expect that there will be a pullback here, and I’m eyeing shares around $90.
Other Names to Watch: TEAM, AVLR, CONE, PLNT, VNOM, SRLP