Stocks are off the races again today after Moderna announced its vaccine candidate is over 90% effective. The Dow surged over 350 points higher at the open and is trending toward a new record close.
Money is flowing back into Wall Street thanks to the end of the election and two viable vaccine candidates. To help you get your slice of the profits, we're going to show you the best call options to buy now.
Trading options lets you amplify the gains of stock price moves. Options even let you get skin in the game for a fraction of the cost of owning stocks outright.
And there are going to be opportunities popping up left and right as this new rally sets in.
We're here to help you find them.
One of our favorite opportunities right now is in infrastructure. The vaccine stocks are getting all the hype, but billions of dollars could be heading to building roads, tunnels, bridges, and airports. Even new energy projects are on the horizon.
You see, infrastructure spending is one of the few things both parties in Washington can agree on, and the next president is outlining an ambitious infrastructure plan, including a $7 billion proposal for green energy.
Money Morning readers know that Quantitative Specialist Chris Johnson has been a big fan of green energy for quite some time. That's why he's honed in on a company that is front and center in the effort to green out the economy. In fact, this company manufactures construction materials, and it recently unveiled a net-zero carbon cement that is already making inroads in Europe.
Net-zero carbon means that no new carbon emissions are created during the manufacturing process. In a way, it repurposes the carbon that would be emitted anyway but uses it to make something useful. That way, there is no additional impact on the environment, and we all get a new building material to use.
As you can imagine, the demand for this sort of material is going to be booming. And that's great news for the stock.
The best way to profit here is with options. Instead of buying hundreds of shares and waiting for the stock to climb, you can control the same number of shares for a fraction of the price and still have a much higher potential upside.
The right option will start to move almost as fast at the stock, but since you have so much less invested, your return can be 100%, 200%, or even more.
And your risk is much less, too, since you have less money on the line to start.
Here's the stock Chris is targeting, including the best call options to buy on it to make the biggest gains...
The Best Call Options Trade Right Now
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Chris is recommending shares of the Mexico-based Cemex SAB (NYSE: CX), which trades on the NYSE in the form of ADRs (American depository receipts), which trade exactly as domestic stocks.
One important point to notice about how the stock has been trading is that it has already gained back all that it lost during the pandemic bear market of March and April. That means there are no disgruntled investors left who are just waiting to sell just to break even. Either they have already done that, or they are not going to because the rising trend here is rather strong.
Chris likes the stock at $4 per share, which is a little bit lower than where it recently traded. However, in order to really make money, we can buy call options.
Here is the trade:
Buy to open CX April 16, 2021 $4.50 calls (CX210416C00004500) using a limit order of $0.65.
This call has a strike price of $4.50, which is right around where the stock is trading now.
But if the stock rallies above that price, the option could be worth many times more than its purchase price. Remember, once the stock clears $4.50 per share, the higher it goes, the more the option price will move with it, dollar for dollar. That means triple-digit gains can happen, and they can happen soon.
Even so, we have plenty of time with its April 2021 expiration. After all, infrastructure does take some time to plan, bid, and purchase.
Millennial Millionaire's One-of-a-Kind Trading System
It's been generating money hand over fist since the recession of 2008... and now, he's finally sharing the secret!
Investors in today's economic climate need every advantage they can get, and I don't think I've ever seen a strategy more powerful than this.
Click here for the full story and the next three plays he has his eye on.