Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Options
Stocks: AAPL

The Best Stock Option to Buy Right Now Is Only $1

By Mark Sebastian, Volatility Specialist, Money Morning • @OptionPit • February 2, 2022

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

Despite the slight rally last Friday, led mostly by Apple Inc. (NASDAQ: AAPL), the market overall is still down from where it started at the beginning of 2022. We're still in correction territory, and volatility remains high. One bad report from the more than 460 companies reporting earnings this week, and volatility could spike again.

But if you've been with me for a while, you know volatility's nothing to fear - in fact, it's critical for, you know, actually making money. There's a class of stocks that typically performs well when inflation is helping fuel volatility. It's practically a requirement to make money when the market is bouncing.

I'm talking, of course, about banks.

Mid-cap banks especially have been on a roll, riding the high of the U.S. Federal Reserve's promises to raise interest rates. Higher rates mean banks enjoy fatter margins, buoyed by the additional costs for firms to borrow the capital they need for growth.

So even though bank stocks have generally taken a dip along with the rest of the market, they'll be the quickest to bounce back as soon as the Fed hikes rates. And that opens up some great opportunities to buy the dip and bank profits on a quick trade in short order.

The "play of the day" here is a call option buy that I think is set to surge, and you can get into it for just a buck...

I'm Looking at These Specific Banks

What's on my radar is the SDPR S&P Regional Banking ETF (ARCX: KRE).

This fund gets people exposed to a wide variety of - surprise! - smaller, regional banks as opposed to nationwide chains. Net interest income from loans comprises a much larger portion of revenue for these compared to large national banks - 79% compared to 58% - which means they have more to gain from rising rates.

Currently, the fund is trading at around $71 per share, down from highs around $78 mid-January. But given the general trajectory of bank stocks in this market, we should see it move back up into that territory pretty soon, and that gives us a great option trade to make on the dip.

Specifically, I'm looking at the KRE March 18, 2022 $77 call option, literally trading at a dollar as of Tuesday. Given what we saw two weeks ago, this has a great shot at being in the money by March, and the low price gets you a risk-reward setup to die for.

TWO TOP METAVERSE STOCKS could soar over 12 months in a $30 trillion market explosion. Here's how...

As juicy as the KRE trade might be, it's far from the only volatility-driven move on my radar right now.

For Me, It's All About the VIX

I'm always looking for opportunities like these, especially for my subscribers at Profit Revolution. The volatility trading method I've developed over the course of 20 years has helped investors keep making profits during periods just like this one.

I call it the "VIX Traffic Light," and it examines the trading patterns of VIX futures to predict the degree of volatility in the market - will volatility spike, recede, or stay stable? From there, we can figure out exactly how and when to trade.

Right now, VIX futures are in backwardation, or in other words, continually trading lower month over month. That means the VIX light is green and volatility is expected to continue, which makes it a trader's market.

That's perfect for a guy like me who likes quick, profitable, cheap trades. Here's a recent win I scored for my subscribers in the Profit Revolution chat room: on the 28th of January, I posted this:

When I typed this trade, these calls were a measly 10 cents with hours until expiration.

But by 4 p.m., they were up 150% as Apple Inc. blew higher.

This week, AAPL is continuing its run, and I think it could make a move to $180. Every week in the Profit Revolution trading room, I look for calls that can profit just like this one.

I'm working on my next recommendation right now - it'll hit my subscribers soon. I'd love it if you could join us and maximize your profit potential no matter what the overall market conditions are. To get started, click here...

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…

Claim My Free Report

Mark SebastianMark Sebastian

About the Author

Browse Mark's articles |
Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments


Latest News

September 15, 2023 • By Shah Gilani

We're Headed for a Second Banking Crisis - Here's What to Do

September 14, 2023 • By Tom Gentile

Tulips Are the Secret to Trading the Next 300% Rally in AI

September 14, 2023 • By Chris Johnson

Tulips Are Telling Me How To Trade the Next 300% rally in AI
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz