The Best Election-Year Stocks in 2020
Members recently took a quick 22% gain on a media stock in The War Room. They held it for about a week.
We’re not just options in The War Room – about 10% of our picks are stocks.
In this case, it was Gannett (NYSE: GCI), the publisher of USA Today, among other media properties. Now a small cap, Gannett was once a major player in the game.
However, even though members cleaned up on Gannett, it’s not the best election-year media play in the market.
Below are two stocks that to me are the best election-year media plays…
The first is a microcap stock called Entercom (NYSE: ETM), which owns a bunch of radio stations all over the country. During election years, ad spending is ramped up, and companies like Entercom benefit. Maybe that is why insiders have been buying the shares at current levels of $1.50, below $1.50 and above $1.50. If you want a pure speculation, this is it.
The other big player is Sinclair Broadcast Group (Nasdaq: SBGI). This media giant owns a ton of TV properties mainly aimed at those with a right-wing political persuasion. It also benefits from a lot of sports programming.
This year, sports programming has not been the place to be, and Sinclair shares have suffered, plunging from the $50s to less than $20 as the pandemic has taken sports off the table… until now.
Shares are beginning to perk up as some sports are starting up again. And pro football is still on the menu for a late-summer kickoff. Add this to the massive election-year spending on tap – billions of dollars – and this might be a great time to dip your feet into what I think is the best election-year stock.
I would use a longer-term options strategy to get past Election Day and go out to March 2021 to give us the benefit of a post-election earnings report. And if you want to lower your cost, do a vertical spread, where you buy an option with a lower strike and sell an option with a higher strike against it.
Or you can just take a position in the stock.
Action Plan: No matter how you play Entercom or Sinclair Broadcast Group, one thing is for certain, you want some exposure to this election season – and these two stocks may give you the biggest bang for your buck.
In The War Room, you can bet members will be trading in and out of stocks like these to get their fill of election-year thrills and profits!
Join me in The War Room now and trade the 2020 elections in real time!
P.S. Take Profits Alert! If you’re holding any of the following Trade of the Day picks, then you’re looking at very strong gains across the board. Let’s go ahead and ring the register on them and lock in profits! Here are the exact recommendations:
- Clorox (NYSE: CLX): Sell HALF. Hold the remainder.
- Inseego (Nasdaq: INSG): Sell HALF. Hold the remainder.
This way, you’re locking in profits on a partial position – and still positioned for more upside ahead!
About Karim Rahemtulla
With more than 20 years of experience, Karim has mastered the subtle art of options trading. What we admire about him is his ability to score huge gains while minimizing the massive amount of risk that often comes with options. Beyond his expertise in options trading, he is also the author of the best-selling book Where in the World Should I Invest? He publishes weekly about smart speculation in his latest free e-letter, Trade of the Day.