Extreme Trades for the Week of February 4, 2019
February 4, 2019Like most investors, one of your top goals has been to enjoy financial freedom at whatever age you choose. So, it stands to reason that your money should ideally generate above-market returns with below market risk.
Truth is — if you really want to become a better investor then you need to be looking at where the smart money is heading. You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.
That’s how the long-term wealth can be found. Here are some of the top opportunities.
Opportunity No. 1 – Apple Inc. (AAPL)
Apple needs no introduction.
At the moment, it’s still aggressively oversold with improving fundamentals. Plus, with the trade war likely to cool off near-term, Apple will benefit from that, too. Better yet, major analysts are now saying, “The bad news is over” for the stock.
For example, according to CNBC, Morgan Stanley’s Katy Huberty’s post earnings take was titled, “Reasons to be bullish.” She noted that, “Importantly, Apple made investors feel better about several recent debates – 1) weaker iPhone demand, 2) gross margin risk, and 3) Services growth deceleration, which we address below in more detail…”
UBS analyst Tim Arcuri increased his price target to $185 from $180, and said, “we think the worst of the bad news is over for a while…”
With Apple, consider buying the stock and/or the AAPL March 15, 2019 170 calls at market.
Opportunity No. 2 — Activision Blizzard Inc. (ATVI)
ATVI has had a rough outing over the last few months on soft sales. However, there are two key reasons to like the stock here.
One, while we wait on the ATVI recovery, we can get paid to wait. The company pays a current dividend yield of 0.71%. The best part – the company has a history of raising its dividend every year. Also, the stock is trading at its lowest valuation in years, despite an outlook for growth in earnings that are set to be double digits each year.
With ATVI, consider buying the stock and, or the ATVI May 17, 2019 47.50 calls at market.
Opportunity No. 3 — NIO Inc. (NIO)
Known as the Tesla of China, NIO is the country’s leading high-end EV manufacturer. Given China’s desire to increase EV adoption rates, and the impressive rollout of its ES8 SUV, the company is seeing significant catalysts. As of December 2018, the company announced the delivery of 11,348 of the SUVs for the year.
“With 11,348 ES8 deliveries in 2018, we exceeded our delivery goal for our first calendar year as a public company,” said William Li, founder, chairman and chief executive officer of NIO. “2018 has been a milestone year for us, as we produced and delivered over 11,000 ES8s and launched our second production car, the ES6, a 5-seater high-performance premium electric SUV on NIO Day in December 2018. We will continue to focus on market penetration by delivering high-quality products and holistic services to our users and to improve the system efficiency of our development and operations.”
With NIO, consider buying just the stock at market prices.