Today, I want to talk to you about something you’re probably sick of hearing about by now – the U.S.-China trade war. Trust me, I understand. The constant back-and-forth is wearing me out as well.
The tariff trouble is practically embedded in our brains at this point. Just hearing the words “trade war” brings about images of Twitter headlines and drastic 800-point drops.
August was the second worst month for stocks all year thanks to the tariff wars, right behind May – a month that was also brought down by China and the U.S.’s back-and-forth.
The trade war has been the single biggest mover of stocks this year. It’s caused the Fed to cut interest rates and brought about a whole new round of recession fears while U.S. companies struggle to deal with the growing taxes.
But there’s one company that isn’t struggling. In fact, it’s thriving over there in the Middle Kingdom – and it’s all coming from the hands of its notorious CEO, Elon Musk.
While the broader market struggles to keep up with the ongoing trade war, one influential automaker could yield profit after profit.
Here’s what you need to know right now…
Tesla Inc. (NASDAQ: TSLA) always catches my eye when it’s in the news. If you don’t already know, I’m a big fan of the electric car manufacturer. I have two Teslas myself – one at my home in Florida and one in New Zealand. The vehicles became a serious Gentile-family favorite after my Model S got us safely out of the path of Hurricane Irma last summer.
Well, on Friday, August 30, TSLA grabbed my attention yet again when it won exemption from a 10% purchase tax on all of the cars it sells in China.
CEO Elon Musk was in the Asian country last week for the World Artificial Intelligence Conference, and I don’t know for sure what happened – maybe it was just Musk’s own wit and charm – but after meeting with China’s Transport Minister Li Xiaopeng, he somehow scored an exemption that’s typically meant only for domestic makers of electric vehicles.
Now, this exemption is huge for TSLA. It imports all of its cars from the U.S., so had the electric carmaker gotten hit with China’s retaliatory taxes, things could have been bad. But now, the exemption has the potential to cut the cost of a Tesla in China by almost $14,000, which could increase already high sales.
TSLA sold an estimated 23,678 vehicles in China in the first seven months of this year, according to consultancy firm LMC Automotive. That’s practically double the sales during the entirety of 2018, so just imagine how that number could grow thanks to the tax exemption.
While the majority of U.S. companies struggle to stay afloat amidst the ongoing U.S.-China trade war, TSLA is flourishing. The company is even building its first overseas factory in China, with plans to make its best-selling Model 3 there later this year.
After news of the tax exemption, TSLA jumped 4% in early trading on Friday for its biggest intra-day jump since July 3, 2019. And as the trade war battles on, there’s room for even more growth to come for TSLA.
But here’s the thing – TSLA is extremely volatile. I’ve said it before, and I’ll say it again: love the company, hate the stock. Just look how much it’s moved over the past year…
Year to date, TSLA stock has fallen 27.5% – not a stat that really makes you want to fork over a bunch of cash for buy-and-hold shares. And by a “bunch of cash,” I’m talking about $22,100 for 100 shares, considering TSLA is trading around $221 right now.
There’s actually a much better way to cash in on TSLA without buying a single share.
As I said before – love the company, hate the stock…
And really love the options.
You can see all the up-and-down movement in the TSLA chart above. For option traders, all that volatility spells one thing: opportunity.
Now, high volatility tends to make option prices more expensive. That’s why instead of buying a long call, I like to use a Loophole Trade. (Learn more about Loophole Trades – and discover how to get access to my latest recommendations – right here)
This drastically reduces your entry price without cutting your potential return. Just look at this trade from my Alpha-9 Trader service…
Back on February 26, 2019, TSLA was trading around $292.22. Now, that’s quite a sum of money for a stock. For 100 shares, you’d spend $29,222. But by buying and selling a call with the same expiration date and different strike price, my readers were able to pay just $2.47, or $247 for control over 100 shares, to open a Loophole Trade.
Two days later, on the 28th, TSLA had risen to $318.92. So my readers sold their Loophole Trade for $4.80 – a 94.33% profit!
See what I’m saying? If you had bought the stock, you only would have made an 8.4% gain. And you would have spent a ton of money to get there.
By using a Loophole Trade instead, my readers spent a lot less money… and took home 94.33% in just 48 hours.
This wasn’t some one-off winner, either.
In fact, this is the same strategy that’s handed my readers the chance at gain after gain including:
167.86% on URI…
242.42% on XLE…
102.23% on NVDA…
111.90% on CSCO
151.30% on AAPL…
270.37% on AMZN…
159.48% on CELG…
111.41% on AMZN…
101.64% on BIDU.
Thanks to Loophole trades, my readers are thrilled, to say the least…
Like Gordon Berry, who is new to investing but has doubled his account in just four months: “I just made $4,200 on AMZN, and now my account is worth $14,827.34 today!”
Or Roger Sterling, who’s picked up serious extra cash..
“I had a net gain of $10,670… which followed another big win for $6,200. Tom is by far one of the very best out there.”
And Tim Tratton, who is having a blast: “I made $3,267 on four plays! This has made trading easier and more fun. It’s unbelievable.”
Then, there’s Gary Billings, who more than quadrupled his initial investment: “I took a profit of $18,277.51… that’s 388%!”
As you can imagine, I’m more than ready to share the secrets of this incredible strategy with you today.
So I’m giving you the chance to learn how to use Loophole trades to potentially double – even triple – your money in just 30 days or less.
Even better, I’ll show you how to do it in just three simple steps.
I’m revealing everything right here.
