The Latest Samsung Scandal Could Mean Triple-Digit Profits for Your Portfolio

All eyes have been on election night.

But I've been watching something else...

Something the mainstream media didn't want on the front page.

Samsung.

We already know about its exploding phone problem. It has an exploding washing machine problem. And as of Tuesday, it has an exploding presidential scandal in South Korea, too...

This is horrible news for Samsung - but great news for you.

And here's why...

The Biggest Story They're Not Telling You Right Now

SamsungAt least one of the goals of most publicly traded companies is to see their share prices climb higher and higher. This, of course, benefits both the company and its shareholders. They'd love nothing more than for this pattern to play out, quarter after quarter, until their revenue and earnings explode.

What they don't want to see is their actual product explode.

And unfortunately, that's what happened to Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) - not once, but twice.

Don't Miss: This is your ticket to bigger and better returns... and it won't cost you a penny. What are you waiting for? Read more... 

As you know, the Consumer Product Safety Commission (CPSC) already recalled (and permanently ceased production) of the Samsung Galaxy Note 7 in September. The U.S. Department of Transportation and the Federal Aviation Administration (FAA) also issued an "emergency ban" last month on using the smartphone while on planes.

And now, the CPSC has issued a new recall on 34 washing machine models due to the risk of explosion - to the tune of 2.8 million machines. Keep in mind that this is just weeks after class-action lawsuits were filed.

Now the CPSC (and Samsung) say they're working on a remedy.

But I've got a much better and profitable remedy you can start using right now. And it's on a company that's looking at triple-digit gains, thanks to both Samsung and the upcoming holiday season...

Whirlpool Corp. (NYSE: WHR).

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WHR is recognized as the world's largest appliance maker (by units sold). And WHR is the one I favor now because it's got much more liquidity and options trading profit opportunities. We'll get to those in a minute.

First, take a look at the year-to-date chart on the stock's movement:

WHR stock

As you can see, it's been trading slightly higher throughout the year and has been trending higher after reaching right around $145 (which is near its open price for the year). This slight upswing follows a drop in share price after its latest earnings miss, but could be a result from the Samsung washing machine mess.

No matter the reason, here's one safe way to play it...

WHR options with a March 2017 (or later) expiration.

These will give you the time to capture maximum profits while riding out the wave of volatility we may see over the next five months.

Here's an example of a bull call spread that's low-risk, low-cost, and high-reward. Keep in mind that this is merely an example of how to play WHR using options - I'm not actually making a trade recommendation here.

Samsung scandal

This spread only costs $3.63 (or $363, since one options contract equals 100 shares). All the stock needs to do is make a 25-point price move (to $170) between now and March to deliver profits of up to 161%.

options trading

And if it doesn't, then you'd still get to keep the money you made from the $170 strike call that you sold.

This Is the Best "Retirement Stock" of 2016... And the good news is, it's trading for "pennies." But it won't be for long... its revenue is set to surge 4,709%. Learn the details of this $5 stock today while it's still "on sale." Read more...

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About the Author

Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.

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