No one alive today has ever experienced anything like this.
Restaurants across the world have shut down. Preschools and universities alike have shifted to online learning. In some cities, people aren't even allowed to leave their homes.
The world has declared war on the novel coronavirus, COVID-19. And the markets are in a full-blown tailspin as a result.
In less than one month, all three major indexes shed more than 20% off their recent highs - making it the fastest we've ever entered a bear market.
Portfolios are being drained of cash. Even Warren Buffett, known as the "Oracle of Omaha," has become one of the market's victims. Since the market started crashing, he has lost an estimated $86 billion.
But not every stock is crumbling under the weight of the coronavirus. The following six stocks are still standing - and they're the only place you'll want to put your trading money right now...
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Stocks to Trade No. 1: Clorox
This is an obvious one. Ever since news of the coronavirus hit the media, The Clorox Co. (NYSE: CLX) has seen a boost. As a manufacturer of cleaning supplies, consumers are buying up CLX products in a desperate attempt to disinfect any germ-infested surface, be it your desk at work or door handles in your own home.
Since the end of February, the stock has skyrocketed an impressive 29% - making it one of the best performers in the market for the month of March.
Stocks to Trade No. 2: Kellogg
One place that's remained open through the COVID-19 pandemic is the grocery store. And if you've stepped foot inside of one in the past two weeks, then you know how popular nonperishables have been.
Kellogg Co. (NYSE: K) is a multinational food manufacturing company that makes childhood favorites like Corn Flakes, Pop-Tarts, and Cheez-Its, all popular products with expiration dates more than a few months out - meaning demand right now is high.
Over the past month, shares of K are only down about 7%, while the broader S&P has fallen almost 20%. Trading around $69.25, K is also well above its 52-week low of $52.34.
Stocks to Trade No. 3: Citrix Systems
Citrix Systems Inc. (NASDAQ: CTXS) is a software company with one key service that's boosting the its stock right now - virtual desktop technology. CTXS allows employees to access their work from anywhere, and it was thriving even before employees across the world started working from home.
The company's fourth-quarter earnings report beat expectations, with revenue up 1% for the full year.
With businesses' need for work-from-home technology increasing, CTXS has continued to rise. So far this month, shares are up 21%.
Stocks to Trade No. 4: Walmart
Speaking of crowded grocery stores - Walmart Inc. (NYSE: WMT) has been thriving while shoppers stock up on anything they can get their hands on. Since the beginning of March, shares of the top retailer have risen an impressive 6% while consumers have upped their spending.
Stocks to Trade No. 5: Consolidated Edison
Consolidated Edison Inc. (NYSE: ED) is one of the U.S.'s biggest investor-owned energy companies - and it's become a strong stock during these testing times. In fact, it's on track for its largest percent increase since January 1972.
On March 17 alone, the stock shot up a whopping 18%. It makes sense - with economic unrest skyrocketing, energy has become an extremely important factor in people's day-to-day lives. In fact, the company has even suspended shutoffs for any customers having payment troubles.
Stocks to Trade No. 6: Eli Lilly
Eli Lilly & Co. (NYSE: LLY) is an American pharmaceutical company that's been working to develop treatment for COVID-19. After partnering with a therapeutic antibody discovery company, LLY has been searching for antibodies that can defeat the novel coronavirus.
Since the end of February, the stock has risen 11% as a result.
All six of these stocks are hitting monthly highs - and they're set to keep rising from there.
You see, these stocks are some of the only ones benefiting from the rampant spread of COVID-19. And the spread is far from over. Most experts agree that it could be a few months or more before we see a decline in cases across the United States...
Meaning these stocks are likely to continue showing strength for buyers. They could be the ones to save your portfolio during this uncertain economic time.
Only one question remains - how do you play them?
We're looking at a long-term profit here. But I'm not talking about buying the stock. That could take decades to return the kind of profit we're looking for.
Instead, I'd suggest buying Long-Term Equity Anticipation Securities, or LEAPs. LEAPs are options with expiration dates over a year away. By purchasing a 2021-2022 LEAP, you could spend the next year or two racking up gains on these stocks.
But you won't just want to buy a long call on these stocks. See, options are a great, low-risk choice - but with volatility at all-time highs, even they're too expensive. Instead, purchase call spreads. If you buy a call while simultaneously selling another with the same expiration date but a different strike price, you'll cut your risk significantly - without sacrificing your profit potential.
Here's how it works...
On Jan. 2, 2019, you could have bought a 2020 call spread LEAP on Coca-Cola Co. (NYSE: KO), when the stock was trading around $46. Had you purchased a KO Jan. 17, 2020 $50 call for $1.94 and sold a Jan. 17, 2020 $55 call for $0.61, you would have spent just $1.33, or $133 for control over 100 shares.
All year long, KO rose in price. Toward the end of the year, on Nov. 20, 2019, KO had risen to trade around $53, a 15% increase in price from January. Meanwhile, that call spread rose 100% in value, allowing you to sell it for $2.99 - doubling your money in just a year's time.
We've officially entered a bear market, and a lot of people are losing money. But you don't have to be one of them. While typical long-term investors watch their portfolios drain out over the next couple of years, you could play LEAPs on these six stocks - and keep your own portfolio healthy and thriving.
Options aren't the only way to potentially make money while stocks get hammered...
A tiny slice of the currency market is THRIVING right now.
It's not one that's well-known to many - even though everyone could use this info now more than ever - but I've been sharing its potential with subscribers all year.
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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.