Be the “First in Line” to Profit on These Rebounding Travel Stocks

Disney stock just hit an all-time high of $193.85 following the company’s earnings beat of $16.25 billion on February 11.

This earnings report blew investors’ expectation out of the water.

This household name – known for its bigger-than-life theme parks, cruise lines, and movie studios – took a hit in revenue during the pandemic. But these numbers show that Disney is coming back stronger than ever.

Which is why we’re taking a look at other top stocks that took it across the chin last year that are bound for a breakout – and how we plan to get in ahead of the curve.

This longer-term strategy will have us profiting in on only a matter of months, and you can get all of the details right here…

Use Longer-Term Strategies to Profit Before the End of the Year

Now, I am expecting this trend of recovery to be the new normal, which is why we are going to look at major cruise lines for our next profit opportunity.

Top cruise stocks like Royal Caribbean Cruises (NYSE: RCL) and Carnival Corporation (NYSE: CCL) are trading around 50% below their pre-COVID levels, so there is plenty of upside.

RCL has already booked 150,000 people for test sailings, and once they are given the “green light”, we can expect these cruise line stocks to skyrocket – and we want to get in before it hits.

Let’s take a closer look…

The top revenue producing cruise line company, RCL had pre-COVID revenues of $5.6 billion and was trading at an all-time high of $135.This stock is currently trading around $67.

In the chart below, you can see the price slowly rebounding, but it has yet to hit that spike that we’re going to profit on.

Now, CCL was at a pre-COVID price of $50 and is now trading around $21. If you look at the chart below, the stock has traded flat over the past few months.

So, the major question here is: How do I make money on these stocks’ rebounds?

The simple answer is to buy the stocks outright.

Easy right? Except here’s the thing. Buying stocks can get expensive.

Right now, RCL is going for $75 per share. That means 100 shares will cost you $7,500.

A better answer is to buy long-term call options.

For example, the RCL January 21, 2022 $80 Calls are currently selling for $17 per share. That’s only $1,700 to control 100 shares of RCL for a year.

Now, you can further lower your position risk by creating a call spread. This means selling a higher strike call along with buying the lower strike call to greatly reduce the cost.

Right now, you can buy a RCL January 21, 2022 $80 Call and sell a RCL January 21, 2022 $90 Call for a spread price of $3.25 per share. This is a total investment of $325 to control 100 shares of RCL stock ($7,500 worth of stock) for a year.

The basic formula is to buy a one year Out-of-the-Money (OTM) call and sell a strike or two higher to create the spread.

Apply this formula to any of the above stocks profit big in 2022.

One other thing I’ve come to realize during my decades in the business is that, to truly maximize your wealth-building potential, the key is a balanced and varied strategy.

Long term plays like the ones I mentioned above are safe and steady – and now, they have an even higher ceiling than before.

But you don’t have to wait a long time to see extra returns with my newest trading method… no longer than 60 minutes, to be exact!

You see, some of my biggest wins have all come courtesy of the same 12 stocks, during the same three days every week, and each lasted under an hour…

Talk about fast money!

I’ll reveal everything you need to know in weekly Zoom calls when you sign up to join me for the Money Hour, right here.

Talk soon,

Tom Gentile

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