Now With Over 23,000 Reviews!

Chart of Day: Marijuana Trades are About to Explode

Dec 26, 2017

On November 14, 2017, we recommended that you buy four related trades, including:

  • Canopy Growth (TWMJF)
  • OrganiGram Holdings (OGRMF)
  • Kush Bottles (KSHB)
  • Horizons Medical Marijuana Life Sciences ETF (HMMJ)

To date, we’re already seeing some incredible wins, as we near January 1, 2018.

That’s when recreational marijuana becomes legal in California. And we strongly believe the news could double, if not triple the value of related stocks.

Whether we like it or not, legalization is growing like a weed.

No wonder TWMJF has run from $15.50 to $19.55. OGRMF ran from $2.40 to $3.17. KSHB ran from $2.30 to $3.20. HMMJ.TO ran from $11.50 to $15.81.

We’re even adding Lifestyle Delivery Systems (LDSYF) to our list of recommendations.

When it comes to the medicinal use of the drug, patients have voiced concerns over the lack of product quality, the need to inhale marijuana smoke, as well as precise dosing. However, with the company’s cannabis-infused oral strips, the drug makes its way to the blood stream quicker than when inhaled with a controlled dosage of cannabis product. Their formula allows the dosage to be more effective for a much longer duration without dips and spikes in dosage and little or no degradation from the liver.

What’s also interesting is that there is no “high” with the medical marijuana strips.

Patients don’t have to ingest, smoke or inhale anything. Instead, what’s used in such strips is the cannabidiol (CBD) ingredient found in marijuana, which provides the same medicinal benefits but without the “high” effects of smoking the plant.

This company has something unique (and proprietary) in the industry and with the high demand for “non-smoking” alternatives we think they have a great opportunity to become a leader in the Cannabis industry. In addition, it recently filed a new patent intended to act as the core patent for future family of patents to establish new art in the area of sublingual, buccal membrane delivery of active ingredients into the blood stream.

The stock recently ran fro $0.325 to $0.75 and could run higher.

From here, we’d like to see the stock near $3 to $5 a share, especially after the company announced that as of December 21, 2017, the Manufactured Cannabis Safety Branch of the California Department of Public Health has issued CSPA Group, Inc. Temporary Category M Type 7 Manufacturing with Volatile Solvents License, which will be effective January 1, 2018 through April 30, 2018. Brad Eckenweiler, CEO of LDS, stated, "There are milestones and then there are milestones. This license marks the beginning of the most significant milestone yet in the development of the CannaStrips project. On January 1, 2018 for the first time the LDS CannaStrips Technology with the CSPA Group Inc. licensee and LDS Scientific Inc. consulting will be producing a product for patients that is safe, free of contaminates, with accurate dosage, delivering consistent results and licensed by the State of California."

Chart of Day: Two More Wins to Take off the Table

Dec 25, 2017

It really shouldn’t be this easy to make this much money.

After taking a 365% win on DIS January 2018 105 calls, we recommended buying to open the DIS February 16, 2018 110 puts on December 18, 2017.

At the time, DIS traded at $111.03. The puts traded at $2.50.

Right now, DIS trades at $108.67. The puts trade at $3.90. We’re recommending that you sell to close half of the trade to secure the win. Hold the second half. We believe DIS could pull back to $105 near-term.

Our other winner is AT&T (T).

On December 11, 2017, we recommended buying the T February 16, 2018 36 calls, which traded at $1.55. The calls are now up to $3.10 for a painless 100% win. Sell to close half to secure the win.

Chart of Day: It's time to Play Disney Downside

Dec 18, 2017

After taking some massive wins on Disney (DIS) call options, it's time to reverse course and play potential downside.

While it may sound odd to trade the release of a movie, we used to do is all the time with Marvel and now Disney (DIS). In fact, since buying the Star Wars franchise in October 2012, we’ve seen two new films – The Force Awakens and The Last Jedi.

Before and after each, we got the exact reaction we were looking for.

Leading up to The Force Awakens in December 18, 2015, shares of Disney rocketed from $95 to $116. Then, once the excitement of the film release died off, so did the stock, which fell from $116 to $85.

Leading up to The Last Jedi, DIS ran from $96 to $111.

Now that the film is out, we’re expecting for shares of DIS to begin pulling back. Again, this may be an odd trade setup, but we’ve seen it happen before. Technically, it’s overbought on RSI, MACD and Williams’ %R as the stock challenges double top.

We have a near-term price target of $105.

We're recommending that you now buy to open the DIS February 16, 2018 110 puts.

Chart of Day: The Top Tobacco Stock to Own for 2018

Dec 16, 2017

Tobacco stocks went up in smoke in late July 2017.

But that’ll happen after the U.S. FDA announces a new comprehensive plan for tobacco and nicotine regulation that could cut the levels of nicotine in cigarettes to help make them less addictive and easy to quit.

Part of the reason for such a push is health.

According to the FDA, the use of tobacco is still the leading cause of preventable disease and death in the country. It’s already led to 480,000 deaths a year. Worse, it’s bled more than $300 billion in health care costs and lost activity.

Shares of Altria (MO) gapped from a high of $74 to $63 on the news, falling lower to $61 in the weeks that followed. Even British American Tobacco (BTI) fell from a high of $68 to less than $61 a share.

The only related stock that didn’t take much of a hit was Philip Morris (PM), which sells a good portion of its brands outside of the U.S. We can assume PM would not be as directly impacted by FDA rulings with regards to nicotine sales outside of the U.S. borders.

For those directly impacted, though, the effort “to reduce nicotine levels, is considered by many as a monumental effort to reduce smoking, on par with the 1965 initiative to introduce health warnings on cigarette packs, and is expected to have a tremendous effect on the US$130 billion tobacco industry,” noted Vaping Post.

It may sound like terrible, damaging news. But it may have also provided an opportunity.

For one, while regulating nicotine levels is likely to have a negative effect on big tobacco, related companies began to move into safer alternatives to keep business afloat.

In fact, many have begun launching electronic smoking devices.

Philip Morris for example has spent more than $3 billion developing safer alternatives, such as the IQOS device, a smokeless alternative to combustible cigarettes. The device, launched in Japan in 2016 immediately sold out.

And two, it’s till too early to tell what the FDA may end up doing, and even how big or little of an effect any potential regulation will have. At the moment, related stocks have only sold off on the fear of a “what if.”

However, we’re beginning to see signs of sharp reversals in stocks like PM, which has already moved from $102 to $109 recently. But we believe we could see $112, near-term. While the stock is pricey at $109 a share, we still see opportunity.

There are two ways to trade PM here.

One, you can buy the stock at current market prices. And, or you can buy to open the PM March 16, 2018 110 calls at market prices.

Chart of Day: Disney Returns Another 365%

Dec 14, 2017

On December 4, 2017, we exited half of the DIS January 2018 105 calls at $6.10 for a quick return of 294% from an entry price of $1.55. Those calls are now up to $7.20 for a return of 365% as the underlying stock tacks on another $3.60 today.

Sell to close the trade to bank the win. Congratulations.

Page: 1 ...