Wouldn’t it be something to strike it rich within a year by investing in some stocks? That tantalizing possibility might be as elusive as predicting the 2024 World Series champion before the season even begins, with the odds potentially being stacked against you, but oh, the thrill of that jackpot win. That’s a lot like the potential of these stocks that could lead to riches.
No, we won’t get bogged down in dreary metrics like revenue growth and earnings multiples here. That’s just jargon. Instead, we’re going to navigate through the options market, using a nifty tool called the options roadmap that I developed, to uncover some exciting opportunities that could lead to significant gains. Remember, though, the higher the reward potential, the higher the risk – that’s just how the game is played.
While you certainly have the option of sticking to the open market, you may stand to gain the most by going down the derivatives route if you’re seeking those lucrative rises.
Joby Aviation (JOBY)
Source: Iljanaresvara Studio / Shutterstock.com
Specializing in electric vertical takeoff and landing (eVTOL) aircraft, Joby Aviation (NYSE:JOBY) has caught the eye of many due to its potential to revolutionize air mobility. Although JOBY stock has seen substantial retreat since a significant rally in June last year, there is a fundamental catalyst that speculators are eyeing – its upcoming earnings report scheduled for Feb. 21.
If you have faith in Joby’s ability to deliver a compelling narrative, you might choose to stick to the open market. However, you might find a more enticing opportunity in the options market. For example, consider the Apr 19 ’24 6.00 Call. Post earnings disclosure, it could offer roughly two months of time value during which you might be able to sell the contract at a profit.
For the long term, I hold a strong conviction in the Jan 17 ’25 7.50 Call, which boasts a bid-ask spread of only 7.69% as of Wednesday’s close. Given the average analyst consensus calling for $8 (with a high estimation of $10), I am confident this call option will prove to be lucrative.
If you’re looking to hedge the risk-reward differential, the Jul 19 ’24 7.00 Call presents a reasonable option, though you’ll likely need a substantial rise toward the upper end of the target to provide that cushion of time value. It’s an incredibly speculative play, but JOBY might just be one of those stocks to consider before the earnings disclosure.
Canaan (CAN)
Source: shutterstock.com/Jarretera
As an expert in blockchain mining, Canaan (NASDAQ:CAN) is a key player in an industry that’s gradually becoming a focus of investors.
Exploring Potentially Lucrative Investment Options Amid Bitcoin’s Halving Event and NVAX’s Challenges
Many investors are seeking to capitalize on the potential impact of Bitcoin’s halving event, scheduled around April 19 of this year. The halving event, which may diminish the block reward for mining Bitcoin, has fueled speculation that it could decrease Bitcoin’s supply and consequently boost its market value.
Positioning with Canaan (CAN)
Among the stocks associated with blockchain enterprises, Canaan finds itself as an intriguing target for investment. While its standing may seem somewhat deflated compared to its counterparts, it could present an opportune gamble in the open market as the halving event draws near. For those interested in the options market, the Apr 19 ’24 2.00 Call offers a promising avenue to leverage the buy-the-rumor, sell-the-news concept.
Alternatively, for investors endowed with foresight extending beyond the immediate aftermath of the halving event, the Jan 17 ’25 2.50 Call holds a considerable allure. With the spread at 4.27% and open interest reaching 1,488 contracts for a distant expiry date, this option manifests an enticing prospect. The aggressive bet of the Jul 19 ’24 3.00 Call also emerges as a tantalizing proposition amid the evolving dynamics of the cryptocurrency market. Deciding to invest in CAN could present an intriguing urge to act in the present.
Assessing Novavax (NVAX)
Novavax, characterized by its high-risk profile and susceptibility to volatility, has faced a tumultuous period following the waning of concerns related to the Covid-19 pandemic. Notably, the company’s contentious dispute with Gavi, the Vaccine Alliance, threatens to exacerbate its woes by potentially entailing a substantial refund—an outcome that could significantly impede NVAX stock’s performance.
Amid the pervasive bearish sentiment surrounding this biotechnology entity, NVAX’s short interest has soared to 50% of its float, with the short interest ratio reaching about nine days to cover. Nevertheless, the potential for a short squeeze remains palpable should contrarian bulls orchestrate a decisive turn of events. The Apr 19 ’24 4.50 Call option represents a particularly aggressive approach, offering a substantial spread of 17.3%. For those inclined toward a longer-term outlook, the Jan 17 ’25 5.00 Call may hold appeal due to its relatively modest 4.35% spread.
On the date of publication, Josh Enomoto held a LONG position in JOBY, CAN, and BTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
