The coronavirus has become a massive heavyweight on stocks, officially dragging the Dow Jones into its first bear market in 10 years on Wednesday.
But not every stock is suffering under the pandemic’s weight.
With more people choosing to stay home during the days and nights, stocks like Netflix, up 15% for the year, and Amazon, up 4%, continue to rise.
Streaming and delivery services, however, aren’t the only companies benefitting from the global unrest.
Healthcare has hit a stride as well.
In fact, an unexpected announcement from Vice President Mike Pence just laid out a fast track for one healthcare stock to shoot skyward, rising above the ashes of the falling stocks around it.
Here’s how you can cash in now…
How Virtual Healthcare Could Hand You Your Next Profit
On February 27, as the number of coronavirus cases in the U.S. continued to rapidly increase, officials from the Center for Disease Control (CDC) encouraged hospitals and clinics to increase their use of “telehealth” tools.
Basically, telehealth is exactly what it sounds like – virtual care. Instead of going to your doctor’s office when you’re sick, you can hop on your phone or computer and video chat with your doctor.
Doctor’s offices are some of the most germ-infested places in the world. In April of last year, a study from the University of Michigan found antibiotic-resistant superbugs on 14% of patients in two hospitals and bacteria on about a third of objects used by patients.
It’s clear that the global population is taking extra caution when it comes to their health right now. That much is clear from the worldwide shortage of face masks. Just head over to Amazon, and you’ll find that practically every face mask on the website is sold out.
Grocery stores are selling out of nonperishable food items. Universities are shifting to entirely online classes for the spring semester. Companies worldwide are enacting work-from-home procedures. It only makes sense that healthcare becomes remote as well.
Teladoc Health Inc. (NYSE: TDOC) is the leading provider of virtual healthcare services. The company allows users to chat with a doctor, therapist, or medical expert by phone or video – and it’s been thriving since before the coronavirus pandemic.
In its fourth quarter (Q4) earnings call, TDOC beat estimates, reporting revenues of $156.5 million, up 27% from the same quarter last year. Its paid U.S. customers grew by 61.1% since the end of 2018, and its pay-per-visit customers increased by 104.2%. The morning after the report, shares soared 22.2% – and they haven’t stopped since.
At the time of writing, TDOC shares are up over 60% year-to-date, while the S&P 500 sits more than 16% in the red. On Wednesday, Vice President Mike Pence announced that individuals won’t be responsible for the costs of virtual healthcare visits like the ones TDOC provides – insurers will. And TDOC popped 6% on the news.
It’s clear that TDOC is a rare gem in the bear market we’re looking at today. But I’m not telling you to buy the stock.
Sure, you could. But it could take a while to yield a return as large as you’d get with a call option. Or, better yet, a call spread.
See, with volatility as high as we’re seeing right now, options prices are expensive. A great way to cut that price, and therefore limit your risk, is spreads – or as I like to call them, Loophole Trades.
In fact, just this week, my Money Calendar Pro readers opened a call spread on Costco Wholesale Corp. (NASDAQ: COST) by purchasing a $305 call and selling a $310 call at the same time.
Alone, those calls would have cost $15.16 and $12.66, respectively. That means you could have ended up spending up to $1,516 for just one contract.
Instead, my readers spent just $2.50, or $250 for control over 100 shares. And within a matter of hours, that spread hit $6.55 – handing readers a 162% gain.
You see, markets are moving fast right now, creating an opportune environment for successful options plays. And with my Cash Course, you can learn some of my best trading strategies in just seven days.
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Have a great weekend,
America’s #1 Pattern Trader