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The market has been on a white-hot tear since last week. The Dow surged 7% higher in that week and kicked off Monday of this week with its biggest rally in five months.
Wall Street is suddenly optimistic again with the election over and a vaccine candidate on the horizon.
Smart traders are taking advantage of this sudden change in sentiment by targeting call options.
But just buying call options right now can be expensive. You can do better. We'll show you how with our best bullish options trade right now.
Why Options Trades Are Profitable Now
Even before the ballots were cast, the market began to rally and in a big way. Four of the last six trading days were hugely bullish affairs that showed that stocks where once again the place to be. Sure, things can become overheated and nobody is promising a smooth, straight-line path to higher highs, but any pullback now looks to be a buying opportunity (as long as the market's internals remain solid and news concerning the pandemic – and its potential vaccines – does not get in the way).
The best way to take advantage of the new market strength is with options. Forget their old image of being only for high-risk speculators. Options, when done properly, can be part of a conservative investment plan because they offer higher returns with lower up-front costs.
But you can't just sit down at your trading app and buy whatever call options you see first. You need to do some research. This is where we can help.
Money Morning's options trading specialist, Tom Gentile, has been cataloging the market's tendencies over the span of his long career. He developed the Money Calendar, his proprietary tool that crunches through 10 years of data on 250 stocks and ETFs, to alert him when it is a good time to buy and when it is a good time to sell.
And it's telling him right now is an extremely strong, seasonally bullish time of year. It may not track exactly like other years have done, thanks to the extremes caused by the pandemic, but it is hard to argue with the market's own data.
The market's reaction on Monday to news of a potential vaccine shows just how much it is ready to take good news and run with it. Even with some uncertainty still lingering, the bias is to the upside this time of year, and that means implementing bullish strategies.
We'll show you exactly how to do that with our bullish options trade.
This one cuts your cost so you don't have to overpay as traders flood back into the market.
And it gives you immediate upside…