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The economic lockdown following the pandemic hasn't just made our lives radically different; it's also creating radical opportunities in the stock market. Nowhere is that more true than for options, especially as free platforms like Robinhood make it even easier for traders to cash in.
Today, we're going to show you how to harness the changes brought on by COVID-19 into profits with the best options to buy in Robinhood.
We're focusing in on one change that's quite interesting. The personal savings rate in this country soared to 33% in April from its prior levels of 13.1% in March and 8% in February. Call it forced savings if you like because people could not get out of the house to spend.
However, it was not all for lack of opportunity as the economic uncertainty we are all living through caused people to pull back on their plans. Instead of spending, they are hoarding their cash, even though savings accounts and Treasury notes yield next to nothing.
For the spending they still do, they are looking for bargains. That's why tony retailers like J.Crew and Neiman Marcus have filed for bankruptcy protection while discounters like Big Lots Inc. (NYSE: BIG) and Dollar Tree Inc. (NASDAQ: DLTR) both announced last week that they beat their first-quarter earnings estimates.
Sweatpants may have taken over from skirts and khakis, but the driving force is the desire to make ends meet while 40 million jobs are on hold.
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And Money Morning Quantitative Specialist Chris Johnson found a way to turn this trend into an opportunity with an options trade.
He's looking at a company that is well positioned to thrive as the economy struggles to get back on its feet. That could give it first-mover advantage as the economy reopens and people begin to spend their money again.
Plus, this options trade is so easy you can do it on Robinhood…