ETF With Potential for 1,000% Returns

As we move into earnings season I’m always happy when I find a sector ETF set up nicely.

Today’s trade idea is a sector I recommended about a month ago with an option trade that could turn into a 500-1,000% winner.

The trade has acted well, but it’s not too late.

Read below to find out why it’s even better now.

As you can see by the chart of the Oil Services ETF, OIH, it’s trying to break over its 50-day moving average, which is the faster moving average on the weekly chart.

https://lh3.googleusercontent.com/47Bxb8DHxc7F8mHB0btkic2mlKoukTcboL8e-py-NULRfWt79_K5GSwT62tJGwDyO3PNNsLsfE1ZG-X179DoEbeLfQR9UqPHpPVT3O11NViQYo2ALw-Bx1wIZhjEVuPq7ffc5u1e

Also take note of the very impressive double bottom!

There’s also a well-defined price range that straddles the 50-day average. This creates a nice setup.

The trade is to buy over the range high of $15.30, and put a stop under the range low of $14.30.

This is a great looking long-term chart, so buying the stock and looking for a long-term target of $22 looks very possible.

However, there is also a very interesting shorter-term play in the options.

The October 17 calls are trading for about 27 cents and will probably be trading just over 30 cents on the breakout over $15.30.

If OIH rallies to 18 by October that will be a 200% gain.

However, crude oil often surprises the market and with the double bottom, and earnings season there’s a chance we could see a surprise move over $18.

A break over $18 could lead to a pop up to $21.

While the odds of that kind of move are low, if OIH reaches 21 by October expiration would be over 1,000% gain.

Even half of that kind of return would be nice.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily