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Now that the economy is reopening, stocks have been off to the races. The Dow is up 4% in just the last week. Some days it opened weakly on bad news but closed higher. Other times, it just started strong and stayed that way.
Traders are optimistic about the recovery, and that's creating opportunities left and right. To help you turn those opportunities into cash, we're sharing the best options trade on Robinhood right now.
That means this is an options trade simple enough to execute on a free platform like Robinhood, and it's cheap enough that it won't break the bank for most traders.
But there's plenty of upside here too. In fact, one of our recent Robinhood options trades just popped for a 240% gain.
Here's the thesis behind today's trade…
How to Make Money on the Latest Stock Rally
The main reason for the current rally is the prospect of the American economy opening back up for business sooner rather than later. While the coronavirus has not gone away, the experts know a lot more about it. Indeed, sheltering in place has certainly kept the healthcare system from being overrun.
But people want to get back to work. And they want to shop and go to the beach.
Money Morning Quantitative Specialist Chris Johnson said that people just cannot wait to get back out there. That's why he thinks one particular stock is poised for some monster-sized gains as all that pent-up demand gets unleashed.
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Even better, Chris says this company is resistant to future restrictions or lockdown efforts if there's a second outbreak. Unlike brick and mortar retailers and restaurants, this company is going to see higher demand this summer no matter how strict social distancing rules get.
Chris has also taken note of general market action and would not be surprised if stocks end this holiday-shortened week up by 7% or more. That would be about 3,162 on the S&P 500. And it would represent an 80% recoupment of the steep losses it suffered in February and March.
Combine a strong market – at least in the short term – and the stock of a company ready to sell exactly what the public wants to buy as they emerge from lockdown, and you get the recipe for a winning trade.
Here's the best options to buy today…