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Investors are excited about the economy being reopened and stocks keep running higher, but you can make even more money by using options trades to juice your gains.
That's especially true for stocks that will jump the most as Americans head back out and start spending money again. We've already shown our readers how to play the reopening for nearly 300% gains with another simple options trade.
And we're doing it again.
The best Robinhood options trade today is a play on a stock that stands to grow even faster as the economy reopens.
But it's not as simple as choosing a business you think will do well and buying any option. That's where many new options traders find trouble.
It's important to examine the technicals of the stock, plus the price, liquidity, and time decay of the options.
That's where we come in. Our experts are here to help you find the best options trades.
Money Morning Quantitative Specialist Chris Johnson has been watching the fundamentals closely. And he just uncovered the best options to buy for a quick gain in June 2020.
We're also getting some help from rising volatility too, even as stocks rise.
Although the broad stock market remains firm, the underlying themes of a decimated economy, potential trade wars, and now social unrest are keeping volatility quite high. The CBOE Volatility Index (VIX) – also known as the "Fear Index" – closed Monday at 28.23. That's literally double where it was on Feb. 19, the day the S&P 500 made its all-time high before the pandemic.
What that means is that traders still expect higher-than-normal volatility to rule the markets for at least the next few months. Fortunately, higher volatility makes our options more and more likely to jump into profitable territory.
That gives the trade we're about to show you a double catalyst of economic optimism and rising volatility.
And the beauty of simple options trades like this one is they can be done right on free trading platforms like Robinhood or WeBull.
Here's how to turn the reopening into triple-digit profits with this easy-to-do options trade.