Our Backdoor Marijuana Stock Investment Returned 75% in a Week

Last Thursday (March 29), we showed Money Morning readers how to make a fast profit from the $10 billion marijuana industry through options trading.

And trading options on this “marijuana stock” worked out faster than we ever could have expected…

You can find out all the details about the options trade here, but the company I’m talking about is Microsoft Corp. (Nasdaq: MSFT).

It’s a play on the legal weed industry, because cannabis compliance firm, KIND Financial, partnered with MSFT in 2016 to run its software through Microsoft’s cloud.

And I uncovered a pattern in the MSFT stock price where it rose before earnings were announced in its past two quarters.

The MSFT stock price climbed 6% in roughly a month before Q1 2018 earnings were announced, and the stock price climbed 8.84% before Q2 2018 earnings were announced.

Beginning of the Month Price Opening Price on Earnings Date Profit
$74.71 (Oct. 2, 2017) $79.20 (Oct. 26, 2017) 6%
$86.13 (Jan. 2, 2018) $93.75 (Jan. 31, 2018) 8.84%

Before Q3 earnings are announced on April 26, I expected lightning to strike a third time…

Now, with stock prices so volatile over this last week because of potential trade wars, a lot of our readers paid different prices to purchase the “May 4 $97.50 Call” I recommended.

Also, because of the Easter weekend, some readers waited until Monday (April 2) to trade.

The gains could be even higher if you got in on a lower price, but for those who bought in when the markets opened on Monday, you most likely paid $0.96 per contract.

On April 5, the $97 May 4 option skyrocketed to $1.68 per call. If you paid $0.96 per contract, that’s a 75% gain in just a week.

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If you paid less for the contract originally, you’re up even more.

Options

If you cashed out for 75% gains or more, congratulations.

If your position is still open, here is what to do…

Prices have dropped since April 5. The stock market is turbulent, because U.S. President Donald Trump is seeking $100 billion in additional tariffs against Chinese goods.

Also, the U.S. Department of Labor said on April 6 that 103,000 jobs were created in March, which was well below the 185,000 new jobs analysts had expected.

For risk-averse investors, I would exit the position if it’s still up between 30% and 50% on April 9.

Microsoft is one of our favorite investments at Money Morning, but it’s still not immune when the entire market falls.

You could be leaving money on the table if the price climbs further, but you’re still looking at a 30% to 50% profit in roughly a week.

Not bad.

As we get closer to the May 4 expiration date, I’ll keep Money Morning readers updated with a full report sent right to your inbox as soon as it’s published through our free Profit Alerts service.

We’ll also keep our readers up to date on other profit opportunities through options trading in the cannabis sector as they appear.

In the meantime, we had to make sure our readers know how to make lucrative trades of $2,000… $4,000… even $6,000… or more… in no time at all…

It’s so easy, you can do it all with a few keystrokes right on your cell phone.

It’s so fast, you can pocket any profits in four days or less.

To find out how you can get in position for these weekly windfalls, see exactly what we uncovered right here.

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