The market is chopping ahead of NVDA earnings and Jackson Hole and I’m looking for some safe ways to generate explosive returns.
That may sound like a contradiction. If it’s safe, how can it be explosive? When I find a setup with the potential for a large move in a stock that traditionally has smaller moves, it creates explosive opportunities by utilizing options.
And using the Stock Forecast Toolbox, I found one of those incredible setups last night. It’s a stock that many consider to be too boring to make money, and that’s ConAgra (CAG):
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I see a trending stock that has barely looked back after bottoming on June 4th, and a stock that just provided what appears to be a buyable dip on Tuesday. And just as importantly for me, I see an explosive projected move:
The Forecast Toolbox is projecting a rally of 12% or more, which is a good rally for a high volatility stock and a huge rally for a low volatility stock like CAG. The market simply isn’t expecting any reasonable probability of a move like this, as can be seen via the options. The September 18th $16.50 calls are only $0.38. The projected move to $18.25 would result in these calls being worth $1.75. That’s a massive potential return of 360%. Sure, CAG may stop rallying, but when the forecast toolbox is right, and it often is, the payoff potential in setups like this is massive. It only needs to be right a handful of times, and this patent-pending AI is right much more often than a handful of times.
Make sure to take advantage of the free 7-Day Trial of the Stock Forecast Toolbox so you can see what else it can do for you!
And if you have any questions, never hesitate to reach out.
Keith Harwood
Keith@OptionHotline.com
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