With the Dow finally eclipsing 20,000, there’s plenty of cause for celebration on Wall Street. But some timid investors are still just sitting on their hands.
What more evidence do they need that this bull market is for real?
Fear-mongers who said Donald Trump’s election would sink the economy have seen nothing but a big rally for the stock market and a rash of pro-business policies out of the White House. Naysayers who wring their hands over valuations have sat out eight years of non-stop gains for stocks. And of course, as bonds continue to yield historically low rates and inflation is starting to pick up, anyone who takes a pass on U.S. stocks is stuck standing still in investments that return next to nothing.
Sure, there’s some risk in stocks here. There’s always some risk in stocks.
But there’s also some big-time rewards for those who take on that risk. And right now, the rewards look better than ever.
Make 2017 the year you share in those rewards by using some of these aggressive but highly precise trades. Each one of the 12 picks below has the potential to double or even triple in the next 12 months!
And as a special gift… our 24/7 Trader experts have also offered up five bonus options trades to supercharge those results even more to as much as 10x your initial investment in 2017!
There’s no obligation to trade these longer-term options, known as LEAPS. They are simply a bonus and you can ignore those sections if you choose.
But keep in mind that good options trades can supercharge your returns, and also mitigate your risk in certain cases where you don’t want to be stuck with common shares.
At 24/7 Trader, we’re all about using the best trades and the best tools to succeed in any market. And right now, the following stocks have the most potential over the next 12 months.
Take a look for yourself:
Trade #1 – WisdomTree (WETF)
WisdomTree Investments, Inc. (NASDAQ:WETF) is one of the largest exchange-traded fund companies that specializes in dollar-hedged ETFs. As a result, it is highly correlated to the U.S. dollar.
The U.S. dollar should continue to be strong in 2017 thanks to nationalist rhetoric out of both the White House and Congress, as well as another interest rate hike in December. Thus, WisdomTree is one the best ways to trade a rising dollar.
Institutional ownership also is strong in this stock, with hedge fund legend Michael Steinhardt owning almost 10% of WETF.
WisdomTree was as high as $21 a little over a year ago, and the stock could trade back to that price by the end of 2017.
Buy WETF Stock Below $11
Trade #2 – Long Credit Suisse (CS)
Under the pro-business policies of a Republican Congress and President Donald Trump, a popular theme for 2017 is bank stocks. But don’t overlook European financials, which are very cheap right now.
One of the best international fund managers, David Herro of Harris Associates, believes that Credit Suisse Group AG (NYSE:CS) should trade at 1.5 times book value. That would be $30 a share, a double from its current share price!
It’s all about the company restructuring to transform itself into more of a wealth management company rather than an investment bank, and you can be sure that easier regulations in the U.S. will allow this European bank to grow here as well as overseas.
Buy CS Stock Below $16
BONUS OPTIONS TRADE – January 2019 $20 calls on CS stock
For those comfortable trading options instead of buying shares, consider buying the long-term January 2019 calls CS Credit Suisse $20 calls. After all, if the common shares double… then these options could return 1,000% in the same timeframe!
That’s the power of long-term options — and a great reason why all traders should consider options trading to supplement owning common stocks.
Trade #3 – Deutsche Bank (DB)
As of this writing, Deutsche Bank AG (NYSE:DB) has a tangible book value of around $40 a share. This means investors are buying a stock right now that’s trading roughly half of what its business is worth!
That’s a slam dunk, as long as you’re patient enough to hang on through short-term headaches of Brexit and other negative European headlines. Eventually, the valuation will resolve itself.
This is a top trade idea of many hedge fund managers, including Morgan Creek Capital. Like Credit Suisse, Deutsche Bank has been deeply discounted in the short-term.
Buy DB Stock Below $20
BONUS OPTIONS TRADE – January 2019 DB Deutsche Bank $30 Calls
If you thought 2018 options were a great way to supercharge your return in CS, consider 2019 $20 calls in DB — giving you a full two years for the dust to settle in DB, and the possibility for a mammoth 1,000% return simply if the stock trades at par with book value!
Again, there’s no obligation to trade option in DB to strike it rich. You can double your money in common shares, as outlined above, and that would be great… but if the trade does work out, you can quadruple your money in these long-dated options instead.
Trade #4 – Oil & Gas ETF (XOP).
The best trades are often the most simple, and that’s exactly what you have with the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP).
Two of the best energy hedge fund managers in the world, Andy Hall and Pierre Andurand, have both predicted oil will trade to $80 after OPEC agreed to cut production. Many investors have subsequently piled into the United States Oil Fund LP ETF (NYSEARCA:USO) as a result, but USO does not track the price of crude oil well because it is tied to the futures market and not directly to today’s price per barrel.
XOP actually holds oil and gas production companies, and correlates extremely well to the price of oil. If oil trades back to $75 to $80, XOP should be worth at least $60 or more than a 50% return in this ETF from its current share price.
And unlike complicated commodity futures that directly play crude oil, you can easily trade XOP in your brokerage account just like common shares of your favorite blue chip stock. That makes this oil-focused ETF an accessible trade as well as a very lucrative one.
Buy XOP ETF Below $40
Trade #5 – Twitter (TWTR)
Some investors believe Twitter Inc (NYSE:TWTR) will be acquired, particularly after the recent chatter over the last year or so. However, others who bought in are getting impatient… and that means shares have drifted low enough for new money to enter this buyout bait.
Japan’s SoftBank Group Corp (OTCMKTS:SFTBF) and its billionaire founder Masayoshi Son have pledged to invest $50 billion is U.S. companies, and is the likeliest buyer. Moreover, Softbank has a war chest of $100 billion in cash in through a joint venture investment fund with Saudi Arabia. That means it could easily afford to buy Twitter for a 50%-plus premium, or at least $26 a share.
That may sound like a tall order, but Twitter and its shareholders would likely only sell for $26 a share given all the acquisition chatter that has come to naught at lower prices — and, of course, since that was its initial IPO price and an important psychological number.
In fact, that’s probably why a transaction has been so hard to make and hasn’t materialized yet. It will take time, but TWTR stockholders who buy at this low point could be richly rewarded when the deal is finished.
The second largest shareholder of Twitter is Saudi Prince Al-Waleed bin Talal, a partner and friend of Softbank’s Masayoshi Son, so you can be sure this is all connected behind the scenes. Just give it time to play out, and you could double or even triple your money over the next 12 months.
Buy TWTR Stock Below $18
Trade #6 – Perrigo (PRGO)
Perrigo Company (NYSE:PRGO) is a manufacturer of “private label” and store-branded over-the-counter medications. And while a much different business than Twitter, the situation is quite similar.
One of the top activist hedge funds in the world, Starboard Value, who has 23% (nearly $800 million) of its hedge fund invested in Perrigo is trying to force Perrigo to sell itself. If that happens the stock could double. Beyond that, Perrigo could trade back to its 2015 high of almost $210, which would be a triple for those who buy PRGO stock here before any deal is struck.
Buy PRGO Stock Below $77
Trade #7 – FireEye (FEYE)
Amid constant hacking concerns for corporate America and the U.S. government, cybersecurity will be a hot topic for some time. And hot topics always lead to big M&A targets, particularly among private equity firms.
Private equity is sitting on record cash right now, and FireEye Inc (NASDAQ:FEYE) has constantly been mentioned by the big players in the space. FireEye could easily be worth at least $30 a share when you bake in a buyout premium, which would almost be a triple from its current share price.
Furthermore, famed short seller Andrew Left believes cybersecurity stocks will be a top sector in 2017 — proving that the bears could get squeezed out big-time.
This would mean be a slam dunk for the stock if and when it happens, but even simple buyout interest could fuel a quick leg up on a short squeeze and continued momentum without a final deal being inked.
Buy FEYE Stock Below $15
Trade #8 – Fitbit (FIT)
Once again, with private equity funds sitting on record cash and unusual bullish options activity, Fitbit Inc (NYSE:FIT) is a top M&A candidate.
With almost $4 in cash per share, zero debt and a ridiculously low enterprise-value-to-sales ratio of 0.42, or 42 cents per every $1 of revenue. Fitbit should easily be worth around 1x EV/sales … or $16 a share.
That’s more than 200% higher than its current share price, meaning a tripler at minimum!
Keep in mind, of course, that Fitbit’s IPO priced at $20 a share. That means a deal may not happen quickly, and Wall Street needs to see stabilization before a leg higher transpires.
Buy FIT Stock Below $7
Trade #9 – Chesapeake Energy (CHK)
Witha warmer than average summer on the way, natural gas prices are set to explode. And Chesapeake Energy Corporation (NYSE:CHK) is simply the cheapest way to play a spike in natural gas.
Moreover, billionaire hedge fund manager, Ole Andreas Halvorsen of Viking Global Investors owns almost $200 million of Chesapeake.
If natural gas trades back to $4.50 — a price many top energy analysts are predicting — then CHK would be worth $14 a share. After all, that’s the price Chesapeake traded the last time natural gas was $4.50.
If CHK reaches $14, that would be a doubler for common shareholders … and if the summer weather proves even hotter than expected and this bull market continues to favor commodity stocks in the energy sector, expect a huge run for CHK shares in the next 12 months!
Buy CHK Stock Below $7
Trade #10 – GoPro (GPRO)
Like some of the other names on this list, GoPro Inc (NASDAQ:GPRO) is an attractive takeover candidate to both private equity and technology companies.
But GPRO has more than just acquisition hopes. GoPro has seen unusual bullish options activity by the “smart money,” which could be a sign that shares can power higher across 2017 even if a takeover is not imminent.
At its current share price, GoPro has just a $1.3 billion market cap, zero debt and almost $2 in cash per share along with valuable intellectual property and technology. Therefore, even at a takeover premium of $2 billion, or $14 a share, GoPro swould almost double from its current share price.
Buy GPRO Stock Below $10
BONUS OPTIONS TRADE – January 2018 calls at $10 on GPRO stock
A takeover at $14 would be a nice gain in common shares … but long-dated January 2018 call options at $10 are being grossly mispriced, and could TRIPLE your money or more!
If you believe in the takeover narrative and are willing to trade options, why not take the even bigger bounty via these $10 January 2018 calls instead of settling for common stock in GoPro? It’s the same basic idea, but much bigger profits!
Trade #11 – CF Industries (CF)
Agriculture is a huge theme in 2017 for low-risk investors, as price inflation has started to creep up for some crops and as investors look for stable companies that haven’t been overbought in the recent rally.
Agricultural chemicals giant CF Industries Holdings, Inc. (NYSE:CF) fits the bill with a recession-proof business, since farmers will always need to increase their yields and consumers will always eat regardless of the macro environment.
CF is a top agricultural stock that one top hedge fund manager — John Burbank of Passport Capital — said could be worth at least $60 a share.
That would be almost a double from its current share price.
Buy CF Stock Below $32
BONUS OPTIONS TRADE – January 2019 CF CF Industries $40 Calls
Once again, options traders have access to much larger gains than common shareholders despite investing based on the same idea. Because if CF stock doubles by January 2018, $40 calls would have 3x or 4x upside at current pricing and you have almost 2 years until expiration!
Once again, options traders win with the same idea… but they win much bigger!
Trade #12 – Long General Motors (GM), or GM Jan 2018 $40 calls.
General Motors Company (NYSE:GM) is one of the best value stocks around, with a 4% dividend yield and forward price-to-earnings ratio of 5. But it also could be one of the fastest-moving momentum stocks of 2017!
Top billionaire value investor David Einhorn of Greenlight Capital recently said, “we have dramatically increased our GM position” in anticipation of huge gains this year.
And more importantly, General Motors has $16 per share, or almost half of its market capitalization, in cash to buy back its stock and weather any short-term problems as you wait for those gains.
Billionaire David Einhorn says GM could be worth as much $60 a share by next year based on buying pressure and share repurchases, which would mean almost a double for current shareholders.
Buy GM Stock Below $36
BONUS OPTIONS TRADE – January 2019 GM General Motors $40 Calls
If you want to buy and hold GM shares forever for the dividend growth, feel free to jump in to common stock at this bargain price. However, if you’re looking simply to get out of the position for a big gain in a year or so, once again options provide more upside on the same basic idea.
While common stock may double, the January 2019 GM General Motors $40 calls are so cheap they could return almost 1000% if the same circumstances transpire. It’s the same idea, just a different asset that allows for bigger returns.
These Trades Are Only the Beginning!
As you can see, there’s lots of opportunity in stocks… but there can be even BIGGER opportunity with options. However, a lot of investors remain intimidated by these investments.
That’s a shame, because it’s easier to trade options than ever before. And as you can see from this report, using options the right way can turn a good investing strategy into an amazing one, doubling or even tripling your potential gain!
If you are interested in using options to supercharge your returns, then here’s your chance!
Ken Trester and Power Options Weekly will teach you how to trade options… and ensure these trades are only the beginning, as you get a continuous flow of amazing options opportunity every single week,
With Ken’s decades of experience, accessible advice and regular updates, you can be sure that…
- You’ll know the best price to execute the best options plays — and NEVER overpay!
- You’ll know the expected price volatility for all trades — a key to option pricing!
- You’ll know your probability of profiting — and know in ADVANCE!
- You’ll know your strike price for exiting each trade — in ADVANCE!
You can take a big step forward with trading options, and Ken is here to help you. With his help and his constant communication and training via Power Options Weekly, you’ll be sure to limit your risk and capitalize on big opportunities not available to buy-and-hold investors.
As a new subscriber, you’ll get up to speed quickly with full access to a special options training guide, “Simple Strategies for Big Profits with Options.” That way, you’ll be ready to act with confidence on the very first trades that Ken sends your way.
5 Best Trades Out of 255 Million Options
To get the latest options opportunity, you need to act NOW. That’s because Ken personally reviews and selects the trades on Thursday …
… then applies his own proprietary filter before issuing his 5 Power Trades every Friday morning during pre-market hours.
Only the Top 5 make it through — out of 255 million actively traded options!
This very selective advice and hands-on analysis will get you comfortable immediately with options trading instead of overwhelming you with educational videos, terms and statistics.
Of course, with such a selective screen, these trades don’t last forever. So getting the very latest info is crucial.
Just as important — Ken’s Surveillance System sets targets for getting out of your positions, so you’re never left wondering how and when to exit your trades. Some services simply offer up picks without instructions, but Ken Trester knows that the key to making big money in options trading is having a clear strategy to cash out.
When we have profits on the board, the risk/reward picture is fully evaluated by the Power Options Weekly team of experts and editors to determine whether we should capture those gains for instant gratification or whether it’s better to wait until a target is hit. When a trade has significant profits of 50% or higher, all the factors are reviewed to decide if it’s the ideal time to take your profits off the table. You’ll never go wrong by taking profits early.
And if that’s not enough? As a special “thank you” for your interest, Ken is offering an exclusive 4-for-1 offer — giving you 15 Power Options Weekly trades on the house.
Sign up right now and you’ll get all the educational materials you need to get started. Then, this coming Friday, Ken will send you his 5 strongest, most profit-packed Power Options Buys.
If history repeats, you should be on your way to converting your trades into $1,210 … $1,640 … or even $9,570 of Power Options Weekly profits.
Good deal? You bet it is!
