Supercharge Your Pot Stock Profits with This Simple Options Strategy

There's no other way to say it – the legal marijuana industry is booming. And while investors around the world have been riding this wave, many are not leveraging the industry's full potential.

Today, we'll show you exactly how to boost your returns on pot stocks with options.

It's an industry that could easily reach $50 billion in revenue by Jan. 1, 2020, and that is only about six months from today. The growth curve is spectacular. Grand View Research expects the global legal marijuana market to grow to $146 billion by 2025.

State by state, cannabis is enjoying a ground swell of support, even though the federal government has not yet given it the "all clear" with full legalization. But that has not stopped companies from creating therapies based on CBD, the non-psychoactive compound in marijuana and hemp.

CBD, which is short for cannabidiol, works with the body's own systems and receptors. It acts as natural compounds produced in humans, and all mammals, to relieve pain and many other medical conditions. It will be a boon to the fight against opioid addiction and epilepsy.

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But beyond medical treatments, cannabis is front and center in the wellness industry. From calming lotions to gummies, you can see these products in retail stores already. And it is popping up in unusual places as trendy restaurants drizzle CBD oil on salads.

Both mega-chains CVS Health Corp. (NYSE: CVS) and Walgreens Boots Alliance Inc. (NYSE: WBA) have CBD products on their shelves in selected states. But even that is small potatoes compared to the biggest trend to hit the beverage industry – CBD infused drinks. These include coffee, beer, soda, and others.

The cannabis beverage sector will be one of the fastest-growing segments of the beverage and food industries. According to Grand View Research, the nonalcoholic beverage industry will hit $1.6 trillion by 2025.

Meanwhile, the edibles market – which includes cannabis-infused beverages and foods – will likely hit $4.1 billion in Canada and the United States by 2022.

While that is just a drop in the bucket for the total nonalcoholic market, it's an incredible sum considering the industry barely existed a few years ago.

Picking the Right Pot Stocks and Supercharging Your Returns

As with any industry, there will be winners and losers. While getting the sector – cannabis – right gets you halfway there, you still need to drill down to the company level to find the best of the best. Throwing darts at the stock listings only works in the movies.

Money Morning Options Trading Specialist Tom Gentile can help. Using his proprietary screening tools, he identified several top-rated pot stocks that also show signs that they are ready to explode higher.

We'll focus on one of them and show you how you can easily double and triple your possible gains.