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It's no secret that the pandemic has transformed our economy. From working from home to an exodus from big cities, these changes are not just disrupting the status quo; they're creating opportunities too. You can harness these changes by using the best call options trade today on a company positioned to dominate in this new economy.
Companies no longer need such centralized infrastructure – office buildings – because more and more people are working from home. Real estate is at risk. And so are industries where people must get together, like catering, Broadway, and sports.
Just when we thought it was safe to get back to the gym and on a plane – with proper precautions – the second wave of the virus hit Europe and is expected to come here, too.
But these disruptions have been a boon for other industries. Companies selling products that aid our stay-at-home lifestyles are popping. Peloton Interactive Inc. (NASDAQ: PTON), the maker of home exercise bikes and live workout subscriptions, is up over 300% on the year.
But there is one more industry that's benefited from these changes, and it's creating our next big opportunity.
You see, even though more people are working from home, they're still going to need cars. But they're not going to want to pay the premium for a new one if they aren't commuting for hours a day in it.
Money Morning Quantitative Specialist Chris Johnson sees this trend as the new normal. Whether it is a transplanted urbanite or just someone finally coming out of their COVID-19 bunker, people will want to buy or replace their cars. But since there is still so much uncertainty in the economy, they also want to save some money. Used cars are in high demand.
COVID-19 has led to an increase in used car sales as people avoid mass transportation and are more sensitive to auto cost in the recession, reported CNBC.
Car and Driver reports used car sales are as high as they've been since 2007, when the economy was mired in a recession. Used car inventories fell 22% this summer.
This trend will continue. In fact, used car retailer TrueCar Inc. (NASDAQ: TRUE) and its ALG subsidiary forecast that used vehicle sales will be up year over year for a fourth consecutive month.
But there is even another angle that makes the used car industry an even better opportunity for investors.
It's the next best thing to owning a dealership. And by using an options trading strategy, you can amplify your profit potential even more.