The Best Robinhood Options Trade Today Has 230% Profit Potential

Options traders salivate over earnings season. The prospect of a stock snapping higher or lower in a matter of minutes could make for a handsome payday if you're on the right end of the trade.

But let's face it: There are times that a company is about to announce earnings but we have absolutely no idea whether they will be good or bad. Will the stock price explode higher? Or will it crumble?

Fortunately, we don't have to know to make money. The options trade we'll show you today uses a strategy that can make you money no matter which direction the stock goes, just as long as it moves. And this trade doesn't require a PhD in mathematics or an expensive brokerage account. It's simple enough to do on popular trading platforms like Robinhood or WeBull.

We did that on purpose since a lot of beginner options traders are really looking forward to earnings season and the big stock moves that often happen. We want to make sure you're set up for success.

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Now he's finally showing the public exactly how his strategy works.

Our experts have done the research on which stocks move the most during earnings, and applied their know-how to build this trade. And today's trade comes from one of the best to do it.

Money Morning's options trading specialist, Tom Gentile, has been tracking the market impact that the coronavirus has had this year. The pandemic has left 174 million people unemployed worldwide, which has ultimately resulted in $2.1 trillion in lost income. Yet the Nasdaq just hit an all-time high this week.

That means the level of uncertainty - and volatility - surrounding the economy and earnings is unprecedented. If you are trying to guess whether a company will hit or miss in this earnings season, you could be dead wrong.

That's why Tom is suggesting that traders take a look at a trade called a straddle. This is a trade in which you buy one put and one call on the same stock and make a profit if the stocks soars or if it craters. The beauty is that it does not matter which.

As you know, there is no free lunch. A straddle will lose money if the stock stays flat. But when out experts expect volatility, the odds are in your favor that the stock will make a substantial move.

Here's the stock Tom's research tools pinpointed as having the highest probability of moving during earnings season. It's one that will get a lot of attention because analysts have no idea of what to expect, and that means the chance of a big move in one direction or another is higher.

And it could mean a return of 230% or more...

The Best Options Trade to Make on Robinhood Now

One of the industries that has been particularly hard-hit and is very dependent on people traveling again is hospitality. Once people stopped flying and started staying home, the travel industry came to a grinding halt. Even now, when companies are marketing how they will keep us safe, there is still a cloud overhead.

One excellent candidate for a straddle trade is Marriot International Inc. (NYSE: MAR), the giant hotel chain. People are laser-focused on how much damage COVID-19 did on its business already this year and what the future might bring. Optimism for a rebound carried the stock higher from its March low but since peaking on June 5, it has been a bumpy road, and mostly downhill. Compare that to the S&P 500, which just closed above its June high and is just 4.3% away from its all-time high.

Marriott's Q2 earnings, scheduled for Aug. 3, will give us the clearest glimpse yet of just how badly the business was hurt by the pandemic. Plus, we'll see what the company plans for the rest of the year. Depending on what they report, the stock could surge higher on optimism or plummet as Wall Street runs away from its suffering business. The stock has a really good shot to make a strong move.

That makes a straddle the perfect play here. We are looking at the MAR Sept. 18, 2020 $90 put and $90 call. Each option is now trading near $8, so the total price of the trade would be $16, or $1,600 per straddle.

A 15% to 20% move over the next few weeks is well within the realm of possibility, given the stock's current elevated level of volatility. Remember, both options are at the money, which means that they move nearly dollar-for-dollar with the stock. Considering the low price to play, that can mean a quick gain of 40% or more.

But based on Tom's research, the stocks he's pinpointed as earnings straddle targets have brought traders gains as high as 230% already, so the potential here is even higher.

Learn How to Harness This Powerful Options Trading Secret for Yourself

Live from his private office in Florida, America's No. 1 Pattern Trader is revealing his most lucrative options trading secret yet.

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