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Though the retail industry at large is expecting a long, grueling recovery from the 2020 financial crisis, one retail stock is thriving after reopening 1,600 stores across the United States.
That's why Chris Johnson has zeroed in on this stock as your next money-doubling trade in this week's episode of Fast Profits with Money Morning…
Though this stock was no exception to the bear market, it's already recovered more than 70% of losses since the coronavirus crash. Customers have been braving public spaces in droves to visit its brick-and-mortar locations and tear through its deals on off-price designer goods.
In a Q1 earnings report issued just before the holiday weekend, this company's CEO said, "We have been encouraged with the very strong sales we have seen with our initial reopenings." He believes the "treasure hunt" retail experience in combination with pent-up demand will continue to drive business – and profitability – through the remainder of the fiscal year.
And of course, it wouldn't be a Chris Johnson-approved trade without a strong technical indicator backing up his recommendation – this stock just blew through it's 200-day moving average.
Essentially this tells us this stock is valued higher than its own long-term closing pattern, a clear sign that a breakout is imminent.
Analysts are expecting this stock to pop anywhere from 20% to 40%, but with an option play, you could leverage this stock move for even bigger profits.
Here's Chris with the details…
Make a Killing in Any Market Climate
Action to Take No. 1: Buy shares of The TJX Cos. Inc. (NYSE: TJX) at market.
Action to Take No. 2: Buy to open TJX Oct. 16, 2020 $57.50 calls (TJX201016P00057500) with a limit order of $5.
As TJX continues to skyrocket toward its 2019 highs, you can either profit on the sheer value of the rising shares, or you can leverage this stock move for even larger profit, without having to own a single share.
But as Chris told you a moment ago, we could expect a dip in this stock should they experience any post-reopening complications.
If this happens, we won't be reacting with a rash sell-off. Chris will have an eye on this position and let us know if we need to make a speedy exit…
This highlights an important point that Chris brushed on a moment ago, we need to be careful selecting trading opportunities, not just in the tumultuous retail sector, but in today's market as a whole.
Over the last few months, we've seen more volatility than the last 80 years – making turning a profit even more difficult today, if you're not certain what to look for.
Luckily, you have Chris on your side.
He's got decades of technical trading experience – there's no one better to decode erratic stock behavior and make sense of these mean markets.
And he's been able to turn a pretty penny doing so…
In fact, his readers have been making a killing, even during some of the worst financial turmoil in history. One of his Night Traders reported a 200% gain on a single trade. Another is showing a 300% increase on his whole portfolio.
One Night Trader has claimed a realized $40,000 windfall.
And the profit potential won't stop here. As Chris said before, his specialty is finding fast profit opportunities, in any market.
And today, you can add his expertise to your arsenal of trading tools.