This options trade may be predicting big things for the cannabis market…
There is a reason why we call Canopy Growth Corp. (NYSE: CGC) the “Microsoft of Cannabis.”
It’s going to be one of the most successful cannabis companies in the world, and Canopy isn’t shy about its global ambitions.
And even though the stock price has been slumping since the summer, one person still thinks something positive is just around the corner.
Last week, a trader bought an unusually large quantity of Canopy “Call” options. A trader will place a Call when they believe the stock price will go up. In this particular case, with an expiration date of November 15, the bullish trader believes a positive price move could happen fairly quickly.
They bought a total of 902 CGC call options – representing $35,524 of their hard-earned money.
Now, we’ve seen a lot of positive headlines recently from Canopy. The company bought a 71% stake in BioSteel Sports Nutrition, representing a play at the NFL… began expanding into the United Kingdom… and acquired a cannabinoid research company that will give it a bigger footprint in Europe.
While all of these things add up to a positive outlook for Canopy, we do not believe that these big headlines are the reason that this trader decided to purchase such a large quantity of options over just buying shares of the company directly.
Why a Trader Would Choose Options
There are a number of reasons to choose options.
But in this case, it seems like the trader believes Canopy will offer some improved financial guidance.
Choosing options over stocks – in this particular case – would allow them to see a much quicker return on investment if their bet is correct.
In fact, we’ve seen instances where options (or what we call Cannabis Lots) outstrip stocks by thousands of percent.
Take Aurora Cannabis Inc. (NYSE: ACB).
Back in March, stocks saw a 37% gain in 11 days. Now, that’s nothing to turn your nose up at.
But those who had purchased these Cannabis Lots… their holdings soared 1,353% in that same time period.
And that’s not an isolated example…
In December of last year, the same thing happened with Cronos Group Inc. (Nasdaq: CRON) – but on a much larger scale.
Between December 3 and December 7, the stocks shot up 38%. Nobody would argue that those are great gains in just four days…
Unless they had seen the Cannabis Lots gains. We’re talking about 3,113% in just four days.
To be clear, though… you want to have what we call a “smart portfolio” – a good balance of short-term and long-term plays. That’s why our publications give you a diverse set of opportunities.
How Cannabis Lots Fit into Your “Smart Portfolio”
Playing the short-term game and seeing quick gains can bolster your portfolio – and allow you to play an even better long-term game.
So when the ideal person to spearhead this initiative came to us with Cannabis Lots, we knew we had something big. Something we needed to share with our subscribers.
That’s why we said yes to America’s #1 Pattern Trader… Advisory Board Member… and cannabis business expert Tom Gentile.
The system he and his team of experts created can practically pinpoint winners in the options market.
And we’ve seen it at work, delivering our Cannabis Power Trader subscribers gains of 95%… 143%…even 163%… all in under a month.
This isn’t something you want to miss out on.
Because these trades happen fast and they have the potential to deliver monumental gains.
All you have to do to learn how these Cannabis Lots work – and how you can take advantage of them – is to click here.
18 responses to “This Trade Could Mean Big Things for Cannabis Stocks”
October 30 2019