One of the hottest industries in history was the “dot-coms.” The late ’90s was the era of internet adoption, and it was huge. Many of today’s millionaires have the dot-com era to thank for their fortune.
Now, there’s a new industry on the scene that’s making headlines and minting millionaires – and it’s even more ripe with opportunity than the dot-coms were.
You can make big money fast in this veritable feeding frenzy…
But you can lose it just as quick.
In this lucrative industry, volatility is king. To generate those big, fast profits, you need to know the right way to play this market.
Here’s how…
Options Are the Best Way to Play to Marijuana Stocks
One of the fastest-growing industries in the world right now is marijuana.
In 2017, the marijuana industry generated a whopping $20-plus billion in the U.S. alone. And it’s only going to get bigger – by 2022, it’s expected to hit $77 billion.
The job opportunities are huge within marijuana businesses too. The industry currently employs 250,000 people in the U.S. That’s an increase of 76% from the prior year, and it’s expected to grow to 330,000 by 2022.
The industry is booming, and investors don’t want to miss out – they poured $10 billion into marijuana last year.
To say that this is a growth industry is an understatement. It’s burning hot – literally and figuratively.
Marijuana is being embraced by all ages, races, and creeds in the U.S. and across the planet. It’s not even all the way here yet, and it’s already here to stay. It’s now legal in 33 states for medicinal use, and 10 of those states have made it recreationally legal.
And the rest of the U.S. is on track to do the same, making future growth a certainty – and a profit opportunity you just can’t miss out on. Trust me, you don’t want to be left standing on the sidelines of this white-hot industry.
(P.S. You can make tens of thousands from the cannabis market – every week – just by doing this.)
Now, like the companies of the “dot- com” era, pot stocks are volatile. Moves are often exaggerated, and companies that are here today could be gone tomorrow. Historic data is limited, so picking the “right” companies can be tenuous.
Although pot is legal in 33 states, it is currently federally illegal. This keeps big U.S. players like tobacco companies tentative and chomping at the bit, ready to dive into this lucrative industry.
All of this spells one thing: volatility.
For stock traders, this means risk. But for option traders like us, volatility equals opportunity.
You see, options reduce risk and still provide unlimited reward. They also allow you to make money if the stock goes up, down, or even sideways. No matter which way the stock goes, there’s an option trade that will generate fast profits.
And the climate of the marijuana industry is perfect for picking profits. Here are a few examples…
Compass Diversified Holdings (NYSE: CODI) owns Manitoba Harvest, a leading hemp foods producer and distributor.
On January 24, 2019 I received a buy signal from my Alpha-9 system. So, I bought CODI March 15 $15 Calls for $0.25 per contract.
Remember, one contract is equal to control over 100 shares, meaning one contract cost me $25 ($0.25 X 100). Purchasing 100 shares of CODI stock would have cost me over $1,400 at the time. Talk about leverage!
Just over 3 weeks later, on February 19, Alpha-9 signaled an exit.
So, I sold the CODI March 15 $15 Calls for $0.85, generating a whopping 240% return in just three weeks.
CODI only went up about $1.50 during that time. Had I purchased CODI stock at $14.20 and sold at $15.68, I’d have netted just over 10%.
Now, that’s not bad for a stock purchase. But when you compare it to the 240% return from the option purchase, the choice is clear.
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And CODI isn’t the only example. There’s even a way to invest in the marijuana industry as a whole…
The ETFMG Alternative Harvest ETF (NYSE: MJ) includes various holdings like Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NYSE: CGC), and Aurora Cannabis Inc. (NYSE: ACB), among many other big players in the marijuana space.
On January 11, 2019, MJ appeared on my 10-30 crossover scans as a buy.
The MJ April 18 $33 calls were available for $1.90. And just over two months later, on March 19, these calls were worth $6.00. That’s over a triple gain!
During the same time frame, a straight stock purchase would have netted you 26%. And yet again, the option strategy far outperformed a straight stock play.
I could go on and on with examples, but you get the point…
Big Moving Marijuana Stocks + Options = BIG, FAST PROFITS.
Now, I got into cannabis investing years ago because I wanted to help my buddies – returning vets – suffering from PTSD.
Over the years I’ve made angel investments, bought shares in startup companies…
I even launched my own medical marijuana seed-to-sale operation with a doctor friend of mine.
Because I know the gains here can be extraordinary. I’m talking double, triple, even 50 times bigger gains than traditional investments (as you just saw.)
And the best part is… most investors haven’t climbed aboard yet.
That means you have the chance to jump in ahead of the crowd – before the Wall Street lemmings start piling in.
Go here and I’ll explain step by step how to get started today.
To your success,
Tom Gentile
America’s #1 Pattern Trader
