Start the conversation
Leave a Reply
You must be logged in to post a comment.
An effective vaccine is the only cure to COVID-19, which has seen more than 51 million cases around the world so far.
That's why news from Pfizer Inc. (NYSE: PFE) regarding a vaccine that's 90% effective sent the Dow spiking more than 1,500 points, the S&P 500 surging to an all-time high, and Pfizer shares rocketing 15% in a single day.
But here's a secret I'm only sharing with you...
You see, Pfizer isn't the biggest and best play here.
There are actually four other stocks - all sector leaders, and each with a hefty upside - that the vaccine revelations will ignite into a big-time run.
These are companies whose businesses and share prices were the hardest-hit by the pandemic - meaning they'll be the biggest rebound candidates once a vaccine is in place and the world can go back to operating with a sense of normalcy.
For traders like us, this is a setup for the kind of windfall window that comes along just once or twice in a decade...
The COVID-19 Vaccine Will Have These Four Stocks "Rise from the Ashes"
The four stocks we're looking at today are from sectors that were crushed by the pandemic.
Business went down, and as a result, the stock price was hammered.
WARNING: It’s one of the most traded stocks on the market every day – make sure it’s nowhere near your portfolio. WATCH NOW.
But that means these are the stocks with the most to gain as the world shows any signs of getting past its COVID-19 limitations.
And the biggest indicator that showed the profit potential on these stocks is how they ran up with Pfizer last Monday.
These were the biggest movers in the S&P 500 on the day of PFE's announcement:
All 20 of the stocks listed above shot up over 23% in a single day.
Not surprisingly, this list contains travel, hospitality, leisure, retail, and energy stocks.
A simple approach to riding the coattails of PFE's news is to play the first four of these top-performing COVID-19 recovery stocks in the list above.
Play No. 1: Carnival Corp.
Cruise line giant Carnival Corp. (NYSE: CCL) climbed over 39% after the vaccine news. The company moved above its 200-day moving average. The last time CCL reached this threshold was Jan. 23, 2020 - right as the pandemic was hitting the United States.
Play No. 2: SL Green Realty Corp.
SL Green Realty Corp. (NYSE: SLG) is a real estate investment trust (REIT) focused on acquiring, managing, and maximizing Manhattan-based commercial properties. SLG shot up over 36%, and there's room for this stock to run as people start to flock back to the city.
Play No. 3: Valero Energy Corp.
Valero Energy Corp. (NYSE: VLO) is a transportation fuel and petrochemical company headquartered in Texas that led the energy rebound on PFE's news - spiking up 31% on Monday.
Play No. 4: Host Hotels & Resorts Inc.
Host Hotels & Resorts Inc. (NASDAQ: HST) is the largest lodging real estate investment trust (REIT) and one of the largest owners of luxury and upscale hotels. HST jumped over 30% on the vaccine news and has room to grow as people begin to plan vacations and travel once again.
The main reason these stocks stood out to me is that all four of them gapped high above their 200-day moving average on massive volume last Monday.
Buying stock in these companies is a great way to get your foot in the door, but if you're looking to make serious profits all while reducing your risk, consider buying options.
In fact, you can increase your return on investment (ROI) with call options.
It will take several months for PFE's and a couple other pharmaceutical companies' COVID-19 vaccines to hit the general market, so consider buying January 2022 LEAPS - "long-term equity anticipation securities" options.
These allow you to control a stock for up to three years at a fraction of the cost of a stock share. (For a more detailed breakdown of LEAPS, be sure to click right here).
And before you go, if you're looking for even faster cash, then let me tell you about my colleague, Andrew Keene's, newest discovery.
See, over the last three months, Andrew has been doing some of his best trading.
His followers have seen the chance to grow 546% richer trading what he calls Super Options.
What are Super Options? Well, according to Andrew, they're a way for anyone to leverage the biggest, fastest-moving, most explosive stocks on the planet.
Stitch Fix Inc. (NASDAQ: SFIX), Gilead Sciences Inc. (NASDAQ: GILD), Yeti Holdings Inc. (NYSE: YETI) - he's delivered winning recommendations on all these names and more, with potential profits ranging from 50% all the way to over 400%!
And that was all over the course of the past month.
There's more where that came from, too. Andrew is sending his newest recommendation out later this morning. And I never want to let a moneymaking opportunity this big pass you by.
Click here to learn how you can take part in Andrew's Super Options recommendations.
Follow Money Morning on Facebook and Twitter.
Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter
Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.