Trade Alert: Top Names + Bullwhip Effect

Bullish options trades on our #1 gold stock and a shipping company positioned to benefit from the bullwhip effect.

Shipping Traffic Soars

According to Flexport’s Ryan Peterson, ocean freight bookings from China to the U.S. were up 275% this week over last week.

He wrote elsewhere that he expected shipping prices to triple from where they were last month by the end of June. Our first trade today is a bullish options bet on a shipping company that stands to benefit from this bullwhip effect.

Goldman Likes Gold

Our second trade today is a bullish bet on a gold stock. According to ZeroHedge, Goldman’s trading desk has been buying up gold after the recent pullback. Perhaps not coincidentally, seven of our system’s top ten names last night were gold names.

Today’s second trade is a bullish bet on our top gold name from last night’s list, which also happens to have strong fundamentals. Data via Chartmill (on a scale of 0-to-10, with the exception of the Piotroski F-Score, which is on a scale of 0-9. The higher the number the better.).

• Overall fundamental rating: 8

• Profitability rating: 9

• Health rating: 7

• Growth rating: 7

• Valuation rating: 9

• Piotroski F-Score: 8

The maximum upside on each of our trades is uncapped, and the max downside is 100%.

Details below.

Today’s 1st Trade