A Roaring Stock Market Means Big Profits In Select Financial Plays

Brokerage

The stock market is trending higher, once again nearing all-time highs. Investors are bullish on the economy, as taxes are unlikely to rise, and regulations are likely to see hefty cuts.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!
  • While that bodes well for the economy, it also means the stock market is likely to make new highs in the months ahead. And that will happen thanks to bullish trades going in and out of stocks.

    That should bode well for brokerage firms, a subset of the financial sector. These companies tend to move higher based on increased market activity. And they don’t carry the risk of an insurance company of bank.

    Brokerage firm Charles Schwab (SHCW) just beat on earnings and revenues thanks to increased trading. And the brokerage reported more account openings and a $115 billion increase in assets.

    Schwab shares jumped on the news, and are up about 30% over the past year. The stock is still reasonably valued at 20 times forward earnings.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • Action to take: With shares in an uptrend and closing in on their 52-week high, the stock is likely to break higher. Investors can benefit by owning shares, with pay a 1.3% dividend.

    Traders can benefit with the March $85 calls. Last trading for about $1.10, the options stand a strong chance of moving in-the-money in the coming weeks. Traders can likely see mid-double-digit returns.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!