Start the conversation
The Dow lost over 1,000 points on Monday. South Korea announced 700 cases of the COVID-19 coronavirus. Turkey closed its border with Iran. Italy is in a panic.
But that doesn't mean you have to panic yourself. We have an options trading strategy that could double your money in a week if things continue as they have.
Tom Gentile, Money Morning's options trading specialist, helped our readers make 360% gains from the most recent drop. He shared the pick with our readers last week.
And we're going to use Tom's strategy to make even more profit.
The Dow hasn't lost 1,000 points since 2015. But while all the chicken littles run around crying doomsday, you can actually take charge and win from these nasty market slides.
We'll show you the play for this week. But first, here's how last week went down.
The 360% Options Trading Strategy
Instead of buying shares of a stock, Tom bought put options that were poised to go up in value as the stock price went down. He focused on stocks most affected by the crisis, with out-of-the-money put options expiring within 60 to 90 days.
The travel industry has been hit hard by the virus, so Tom looked at Carnival Corp. (NYSE: CCL) and noticed it had lost a whole 15.16% on the year.
So Tom pinpointed the Carnival Corp. CCL April 17, 2020 $40 put for $1.60. That's a put option on Carnival cruises with a $40 strike price and an April 17 expiration date.
Our NEW Premium Stock Pick could double in the next 12 months. But the window is closing fast to get in on the BIGGEST gains. With a major catalyst just days away, the time to move is now. Click here to get the pick.
If you bought that put option contract, it cost you $160 ($1.60 x 100 options). That turned into a $5.30 contract this week after Carnival shares plunged 17% more – a 306% gain for anyone holding those contracts.
But that's just one options trade in a gold mine of others with the markets in a frenzy.
Now you've read about what happened last week, here's how you can be part of the action…
The Best Options Strategy Right Now
About the Author
Mike is a graduate of the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.