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Some of the best bets on the market right now aren't the stocks that thrived through the COVID-19 pandemic, but the "nonessential" stocks that got hit the hardest – the stocks that stand to rebound the most on the other side…
On today's Fast Profits we're tapping into the reopening buzz with a trade on an ETF that's about to skyrocket off the ongoing financial recovery from COVID-19.
We've been hearing all about how vaccinations are slowly restoring balance to our economy and about how the "post-COVID" world is about to start breathing life back into a few forgotten consumer favorites. We're already beginning to see the effects in stocks like Home Depot Inc. (NYSE: HD), which just released an earnings report outpacing revenue estimates by over 3%.
Today, we're targeting the larger reopening movement with an ETF play on the travel, leisure, and entertainment sector. This ETF's holdings feature a lot of the same positions as last week's recommendation, Bloomin' Brands Holdings, allowing us to double down on the upcoming rally in the food service industry. But today's trade will also be offering some exposure to other big-ticket travel and entertainment names like Walt Disney Co. (NYSE: DIS), ViacomCBS Inc. (NASDAQ: VIAC), and Hilton Hotels Corp. (NYSE: HLT).
These holdings are likely to pay off big time as we get closer to summer, when travel restrictions begin to ease (if not lift altogether), opening the doors to a year of pent-up demand. That means a potentially generous payday for this ETF – and for today's call option trade.
For the full trade details, check out the video below…
Action to Take No. 1: Buy shares of Invesco Dynamic Leisure and Entertainment ETF (NYSE: PEJ) using a limit order of $48.
Action to Take No. 2: Buy to open PEJ June 18, 2021 $47 calls (PEJ210618C00047000) using a limit order of $4.25.
Tom's Winning Streak Speaks for Itself
As we see many of these travel and leisure titans retake profits lost to the pandemic, today's trade could easily double your money or more.
But this isn't the only way to cash in on the biggest names on the market…
Tom Gentile recently overhauled one of his favorite trading techniques, a system to play the most expensive blue chips on the market, without paying for the most expensive blue chips on the market.
Tom was receiving some criticism on his approach, deemed too controversial for many retail traders…
Well now, it's simpler, safer, and more profitable than ever before. And his track record can second that, with 27 wins since April 2020… and 0 losses.
And his next profit play goes live tomorrow. If you get in by midnight tonight, potential winner No. 28 could be all yours.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Straight-Up Profits. He also contributes to Money Morning as the Quant Analysis Specialist.