Many investors fear volatility, but without it, there's no chance to profit. When stocks are moving fast, as they are now with the VIX up nearly 10% today, it is this volatility that provides opportunities to make money.
And no matter which way a stock moves - higher or lower - you can profit with options. We're going to show you how to use one of the best call options to trade right now to make the most of this volatile, fast-moving market.
That's because we want our readers to know that options trading is a valuable tool for almost all levels of investors, from the most sophisticated to savvy beginners.
You see, options are much cheaper than buying the stock outright, but you profit from the same price movement in the underlying stock. For example, if a stock jumps from $50 a share to $55, that would be a 10% gain. But if an option that cost $1 jumps to $2, you have a 100% gain.
This is not a rare example. The right option can move anywhere from a few pennies for every $1 gain in the stock to almost dollar-for-dollar. Finding these trades can help you make the most of the market's moves, hedge your investments, or give you the opportunity to own stocks you like at a discount.
And don't forget: The risk is just the cost of the option. Compare that to the risk of holding a stock that could plunge downward, costing you many times more money.
That combination of opportunity and risk management is why more and more investors are turning to options.
Here's how our experts are finding great options trades right now...
We're Finding Great Options Trades in Tech
With 2021 starting strong, our experts have uncovered a stock that can really move. While it is in the technology sector, it is not one of the overcrowded and overhyped Big Tech stocks that drove last year's recovery.
Money Morning Quantitative Specialist Chris Johnson called this stock's industry "one of the most highly funded, constantly evolving industries" as it is one of the building blocks of a vast array of technologies. Of course, he is talking about semiconductors.
Many investors may think of semiconductors, or chips, as just the heart of computers. However, that was the theme for a different time. Chips are in everything we use, from autos to gaming devices and cell phones.
And it is that latter area that is now front and center in the growing 5G communications network.
The 5G, or fifth generation, communication network promises expanded bandwidth, faster upload and download times, and near immediate control for all types of remote needs, including autonomous cars.
The industry is going to be huge, and companies that can grab a piece early will be able to ride the wave to big profits.
With stocks racing higher, Chris is targeting a lesser-known stock for his call options trade.
That gives you the chance to buy the options at a lower up-front cost while giving you the industry's total upside.
Here's exactly how to do it.
The Best Call Options to Buy Now
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Now with the previous leader in communications chips, Huawei, under a cloud of controversy, the world is turning to alternatives. Infinera Corp. (NASDAQ: INFN) is well positioned to pick up the slack. The company is now a leading manufacturer of semiconductors and fiberoptic technology. In fact, it's currently one of three providers in the world of 800G solutions, a tech feat that could even blow 5G out of the water.
While in recent months, some analysts have questioned Infinera's strategy, the market is saying otherwise. In late November, the stock jumped higher and has been outperforming the market ever since. That put the stock's bears on notice. They are bracing for a "short squeeze," which is a rising trend that forces them to cover - or buy back - the shares they sold short. That just pours fuel on the fire and accelerates the rising trend even more. Chris thinks it could gain 25%.
Here's how he recommends playing it.
Buy INFN July 16, 2021 $10 call (INFN210716C00010000). The option is trading around $1.88 right now, which is right where we want it, because Chris thinks a good entry is less than $2.50.
With the stock trading at $9.50 per share, a 25% gain targets just above $12. Given the explosive growth Chris expects, you probably won't have to wait until July to cash in. If the short squeeze pushes the stock to Chris' target by March, you could bank a 70% profit.
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.