Trade Alert: Top Names + Trump + China

The sky's the limit with this one.

Trump’s Second Term And China

According to ZeroHedge, Devan Kaloo, the Global Head of Equities at abrdn [Sic—the new name of Standard Life Aberdeen pl] said that Trump’s election this week “is likely to prompt aggressive China stimulus". That would make sense: Trump campaigned on using tariffs to reduce America’s trade deficit, and we have a larger trade deficit with China than any other country.

Aggressive China stimulus will be bullish for companies that serve China’s domestic market, and as it happens, one of those companies appeared in our top ten names last night.

Because this stock has a fairly low price, we can bet on it using call options, where our potential upside will be uncapped. Just this week, we exited a call option position for a 730% gain:

1. Calls on Travelzoo (TZOO -2.69%↓). Bought at $1 on 7/23/2024; sold (half) at $8.30 on 11/6/2024. Profit: 730%.

Maybe we’ll have similar luck with this trade. Let’s find out. I’ve also included a bonus, contrarian trade below.

Today’s Top Name Trade