To receive further updates on this STORE Capital Corporation (NYSE:STOR)  trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today.

This morning I am recommending a bullish trade on the publicly traded real estate investment trust, STORE Capital Corporation (NYSE:STOR).

The Dow is set for its biggest monthly drop since 2015, the S&P 500 has not had a month this bad since 2011 and the Nasdaq is having its worst month since 2008, so we are in the middle of a very severe selloff.

While I can’t say for sure, I think the major indices are trying to form a bottom. They are extremely oversold because of how far and how fast they declined, and that’s often a sign that a bounce could be coming.

I’ve been mentioning for a while that October is a very dangerous month for the market, and we’re seeing that right now. However, stocks usually start falling in September, put in a bottom in October and then continue to rise into November and December.

While there have been some exceptions in the past, I think the end of October is a good time to buy stocks. This is usually when the market hits its lows for the year before making a rally into year-end. I think that will be the case this time as well, but it’s hard to say how big of a rally we might get.

Now, this week I am recommending a call option on STOR because I do think the market is in the middle of a bottoming process and should start to rise again in the near term. It could take one of two more weeks before the volatility subsides, but that is very typical after sharp declines.

Buy to open the STORE Capital Corporation (STOR) Dec 30 Calls (STOR181221C00030000) at $0.80 or lower.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.