Yo Zonies!

While Big Tech traders huddle together like my chickens under the propane tank, a rare earth stock just crashed 57 percent from its highs. And that might be exactly the opportunity we’ve been waiting for.

USAR hit 40 bucks not long ago. 

Today it’s trading around 17. 

Most traders are camping out in mega-caps, worried about the shutdown, nestling in and just waiting for this mess to be over. 

But here’s the thing: sometimes the best opportunities come disguised as disasters.

The Shutdown Creates Rare Earth Gold

Currently, prediction markets are pushing this shutdown at least until after Thanksgiving. All sides are digging in because nobody wants to lose face. To be honest, who knows what will happen? The longer Congress stays out, the less we spend. But it’s also creating opportunities in the funniest places.

Not long ago, rare earths were THE story. 

In Capitol Gains, my colleague Frank Gregory pointed out that the U.S. needs rare earth inventory in case the Chinese decide to stop exporting. Of course, China needs to export to keep their mines running because we’re their biggest consumer. 

Classic impasse.

But this administration is going to see rare earth mining go forward. They’ll continue taking key stakes in these companies. And with liquidity leaving the market right now, stocks like USAR are trading way lower than they should be.

The Opportunity

The question is: how low can USA Rare Earth fall? It could hit the low teens easily.

My recommendation: create diagonal put spreads in this name. 

If you want to learn what a diagonal put spread is, tap here to check into Capital Gains and I’ll walk you through it. Basically, it’s a way to buy stock at a lower price while potentially getting paid in the meantime. There’s always risk involved in trades like this.

While everyone’s hiding under their propane tanks waiting for Washington to sort itself out, real opportunities are getting beaten down.

When there’s an opportunity, you have to be ready to pounce.

To Your Trading Success,

AG