BY ANDREW GIOVINAZZI
July 15th, 2025
Yo Pit Crazies,
In case you missed it, MP Materials Inc. (Ticker: MP) has had a week for the ages. The stock has already delivered solid profits for Frank Gregory and me this year in Cap Gains, but the recent boost from the DOD—along with Apple Inc. (Ticker: AAPL) securing a long-term supply of magnets from MP—marks a significant shift in the company’s trajectory.
Apparently, manufacturing in the U.S. is still possible—provided regulators stay out of the way. Now that the federal government is stepping in as a direct buyer, I expect the process to run more smoothly. If this gains traction with the MTI, it might even be something Hans considers down the line.
But what I really want to know is—how can I earn a 160% annualized dividend?
Let’s find out.
US Rare Earths Inc (Ticker: USAR) is a hard to borrow stock
According to my Edge Hunter Hard to Borrow sheet, I can currently gain exposure to USAR using a combination of long calls and short puts at a net cost that’s $4.28 below the current stock price. With USAR trading at $14.93, that represents a 28% return if the stock holds steady over the next 66 days. If you spread that out over a whole year, it’s like getting a really big payout—comparable to a massive dividend.
It’s clear that when the government supports what you’re doing, there’s money to be made. That’s been the core philosophy behind capital gains plays for a long time. The short interest in USAR was largely due to stiff competition from China. But with the U.S. now actively acquiring rare earth assets, that challenge is fading.
It reminds me of what happened in the late ’80s with McDonnell Douglas. The stock was heavily shorted because Boeing Corp (Ticker: BA) was dominating the aircraft market. Then the U.S. government stepped in and ordered planes to upgrade the Air Force. The stock shot up, and short sellers took major losses. Eventually, BA ended up acquiring MD.
I believe we’ll see a similar story play out with USAR. I do own some shares—and this time, I’m not letting them get called away like my MP position!
To Your Trading Success,
AG
