The trade wars and impending tariffs are dominating every news station, headline, and financial conversation.
There’s a hundred different fears, but some of these include job losses and strained foreign relationships. But the main headliner is the fear of an impending recession
And the market is feeling the weight of these headlines, too…
Take Monday, for example, when the Dow, NASDAQ, and S&P 500 dropped328 points, 162 points, and 50 points respectively.
But while it’s easy to see why many people think it’s a terrible time to get their feet wet in the market, there’s actually plenty of opportunities to make some real cash right now…
And it starts with the first real “victim” of President Trump’s trade war…
Here’s what I mean…
As you know, the U.S. is currently in the process of placing taxes on the import of European goods (among others), such as steel and aluminum. So of course, the E.U. is now looking to raise duties on American-made motorcycles by a whopping 25%.
And in a ripple effect this is causing American classic, Harley Davidson (HOG) to move some of its production overseas.
Now, this may seem like a miniscule move on the outside, but when you look deeper into it, you’ll realize that this move by HOG will cause a loss in jobs domestically. In fact, a Harley-Davidson plant in Kansas City is due to be shut down, leading to 260 lost U.S. jobs.
On top of this, HOG is predicting this new move could cost them up to $90 to $110 million per year. And that’s just a rough estimate. So you can imagine that HOG is felt the burn when it came to these new changes. On Monday, the stock dropped 7%.
Now, my Money Calendar Pro readers are quite familiar with the profit potential of HOG… and had the chance to grab 116.33% in just 17 days, all thanks to this simple strategy.
But there’s a new profit opportunity here, despite the bad press following this motorcycle giant….
That’s what makes trading so different from investing – you’ve got to focus on the bigger picture. You see, right now if you focused strictly on the chatter surrounding the market and HOG currently, you’d probably take your money and run…
But if you did that, you’d miss out on a huge profit opportunity, which is (assumingly) the last thing you’d want.
No worries though, here at Power Profit Traders, we never miss the underlying opportunity – and this time won’t be any different.
So here’s two different strategies to consider when it comes to HOG…
1. Medium to Short Term Call Options – With this, I would consider an option with an expiration that is 30 to 60 days out
2. Longer Term Call Options – This would require you to buy an option with expiration dates more than 60 days but less than three years out.
You see, when you buy call, options, you are expecting the underlying share price to go up. And with a case like HOG, I am expecting this rough patch to end. Bad press can rattle a cage, but it is typically short-lived.
Looking at the chart above, I would go for a $35 or $40 strike price as it is showing the biggest chance of support.
Now, as always, be sure to talk to your financial advisor to decide which move would be the best for your portfolio.
And as the constant back and forth of these trade wars continue to dominate the headlines, you’ll find yourself at peace knowing that regardless of ups and downs – you’ll walk away with a profit in your pocket.
You see, American citizens are already swimming in a $13.6 trillion debt pool, $1.5 trillion in student loans, and mortgage debts even worse than the 2008 crash… so we aren’t in the clear just yet…
Whether you’re ready or not, this disaster is still on the horizon – and if you sit by and watch, you will surely regret it. You may have less time than you think to learn how to protect yourself and your loved ones.
Good Trading,
Tom Gentile
America’s #1 Pattern Trader
P.S. Don’t forget, I’m going live on Friday at noon to share the details behind the anomaly I’ve discovered in the gold markets… and the exact details you need for a chance to make up to 10x, 20x, even 50x more on your money than from just buying gold. I call it SpeedGold. Click here to see why… and to learn how to reserve your seat.
