Marijuana Stocks: How to Profit Twice

When most investors think of the cannabis industry, they don’t think of huge, reliable streams of income.

marijuana stocks

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I know that.

And based on the reaction to my first-ever Cannabis Cash Weekly summit, a lot of folks are still trying to wrap their heads around what I told them. That they can …

  • Invest in a safer, lower-risk way in the exploding legal marijuana trend.
  • Collect big payouts every week in what is now the fastest-growing industry in America.
  • Generate income even when stocks go down.
  • And do it in all just a few minutes time.

You may think it sounds too good to be true, but it works. It works great, in fact. I’ve tested it with my own money, and the results were fantastic.

I’ve used this specific strategy almost as long as I’ve been investing. What makes it especially exciting — and profitable — at this very moment is where we can now use it.

I first learned about this strategy nearly 20 years ago when I was a stockbroker at Charles Schwab. Some of us would go out for happy hour after work, and invariably we would talk about our favorite subject — making money.

This was before smartphones, so we brainstormed the old-fashioned way. We would grab those little napkins you get with your drink — “bev naps” — and draw charts, map out strategies, anything that would give us an edge … from fundamental analysis to technical analysis to chart reading and more.

I still have a few of those napkins. They were some of the best investing lessons I’ve ever learned. And I still use some of the strategies we talked about, including covered calls.

It’s been one of my favorite and most profitable investing strategies for years. It’s brilliant. It’s easy to do. And those instant payouts really add up.

Taking Marijuana Investing to the Next Level

What’s special right now is that we can use this proven strategy to boost our returns in an absolutely massive investing theme: marijuana legalization.

Legalization gets closer every day — 33 states already allow medical marijuana and 11 (plus Washington, D.C.) have legalized recreational use. Last Wednesday marked another big step forward as the House of Representatives passed the SAFE Banking Act, which would allow federally insured banks to do business with cannabis companies. It’s tricky now because marijuana remains illegal federally. If this bill gets through the Senate and becomes law, it will open the door to the next wave of marijuana profits.

In 2015, the U.S. legal marijuana market was worth $5.4 billion. This year, sales should climb to nearly $13 billion, and that number leaps nearly 6X to $75 billion by 2030, according to an estimate from Cowen.

Investors have already reaped huge rewards thanks to changing cannabis laws. And as Canada prepares for Legalization 2.0 on October 17, I see my new Cannabis Cash Weekly system as Marijuana Investing 2.0. It’s time to take it to the next level.

One of the things I love about covered calls is that you can make money two ways.

Double Your Ways to Profit

Briefly, covered calls involve a stock and a call option. You buy shares of the stock and then sell call options against it. When you sell the calls, you get paid immediately. That money is yours to keep.

Then, one of two things happen. If the stock rises above the price designated in the call option (the strike price), it gets “called away,” meaning you sell it for another source of profits. If it doesn’t rise to the strike price, you can sell another call option against it and bring in additional income.

One of the biggest misconceptions out there is that options are high-risk investments. That’s definitely true in some cases, but I’m not interested in those.

Selling covered calls could actually be considered less risky than just owning the stock by itself. Yes, you read that right. This particular options strategy can actually lower the risk profile of an otherwise all-stock portfolio.

We just placed our first Cannabis Cash Weekly trade last Wednesday and our second trade today. That’s the beauty of this. You can do it over and over again, and your profits get bigger and bigger. My goal is to do this at least once a week, and sometimes more if we get the opportunity. And we focus on the leading stocks in the fastest-growing industry that is still in its early stages of explosive growth.

In fact, with the legal marijuana industry so young, only select cannabis stocks have call options. It’s also why nobody else is doing this yet — at least I haven’t found anybody else doing it. That makes it one of the greatest income-generating secrets in the world.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.

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