The Covid-19 pandemic and subsequent global lockdown caused massive supply chain disruptions, including in the procurement of semiconductors used in everything from automobiles to appliances.
But a $53 billion spending push from the federal government is fueling a massive recovery to this sector now, allowing us to "flip the chart" on one of its biggest potential beneficiaries.
That investment, in the form of the recently signed Chips and Science Act, is designed to bring chip manufacturing home to the United States and lessen dependence on China and Taiwan, while at the same time developing next generation chips domestically and keeping the technology out of the hands of China.
One of the industries that the Biden administration really wants to foster here at home is green technologies, especially the electrification of automobiles.
Well, there's a company in Scottsdale, AZ that definitely fits the bill and is very likely to continue the pattern of outsized growth that it started since joining the S&P 500 last June. The stock had a good run back in January, but since then, it's been trading in a sideways range that's creating an interesting reversion trade.
I think it's got the potential to make us an easy triple-digit profit.
The company is ON Semiconductor Corporation (ON), and it provides intelligent sensing and power solutions which enable the electrification of the automotive industry and improvements in fast charging stations for electric vehicles.
I like targeting the ON April 28, 2023 $75/$80 Call Spread for $2.25 or less. Plan on exiting the trade for a 100% profit.
Based on the current price, we only need shares of ON to gain 2.7% for this spread to be fully in-the-money (ITM).
As long as ON closes above $80.00 on April 28, 2023, this trade will have easily delivered our 100% profit target.
I know you're all looking for ways to protect your capital as we head into a recession. Infrastructure is another area where the government is already spending billions, and I have a lead on a small company that could potentially solve America's electric grid problems. Shares are literally less than $5 right now, but they're preparing to close their doors to new investors this month.
It's absolutely critical that you see this before institutional investors step in. Click here for all the details...
The post Take Advantage of a $53 Billion Federal Investment with This Trade appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.