Three Backdoor Clean Energy Trades to Profit in 2022

My Top Long-Term Clean Energy Plays

On Monday, the UN released a report on climate change – and they issued a “code red for humanity.”

The key takeaways? Well, the planet isn’t just getting warmer. Tropical storms, heat waves, wildfires, droughts, and flooding are all expected to ramp up.

And it’s mainly due to human activity. But the UN had one specific perpetrator to blame: the energy industry.

Now, I’m not here to tell you to pour your money into “clean energy” companies. A lot of them aren’t doing too hot – no pun intended.

Look at the iShares Global Clean Energy ETF (Nasdaq:ICLN) – I mean, it’s down almost 25% over the past six months.

But there’s a “backdoor” way to invest in clean energy – and that’s by investing in solid, well-known companies that have invested their own money into clean energy initiatives.

Those are the stocks set to soar. And I’ve got three of them – plus three long-term trades – to share with you today.

Let’s get started…

1. Ford Motor Co. (NYSE:F)

I’ve been touting Ford for a while now. It first hit the Profit Takeover radar back at the beginning of June, when we opened a new trade on the auto company.

Now, F didn’t quite find its stride when it came to that call – but I’m still long-term bullish on the stock. Its newest electric car, the F150 Lightning, has 120,000 pre-orders – and it’s moving to electrify an entire fleet over time with a huge EV push.

Instead of a quick-hit trade, this is one you want to ride over a few months. I’m targeting $20 per share for F at the start of 2022, and I’d buy the January 2022 $14 calls for $1.37 to play the upside.

2. General Electric Company (NYSE:GE)

GE makes wind turbines, which turn wind energy into electricity. The company also works with hydroelectric power, which turns the energy of running water into mechanical energy, and is working on switching its use of SF6 gas for g3 – one that has more than 99% less gas global warming potential.

Like F, GE is in it for the long term. And I like a long call spread on this name – buying the January 2022 $110 calls for $7.70 while selling the $135 calls for $1.80, creating a $5.90 trade to play GE.

3. General Motors Company (NYSE:GM)

GM, like Ford, is making a big push to electrify an entire fleet of vehicles. When they produce an electric Escalade, I’ll be first in line – and I’m definitely not the only one. GM will also be a big winner in the infrastructure bill, like Caterpillar Inc. (NYSE:CAT).

I’m going even further out with this trade. Another call spread, I’d buy the June 2022 $55 calls for $6.70 while selling the $75 calls for $1.75.

Mark’s Quick-Hit Watchlist

I’ve got a ton of stocks on my Watchlist today – so, instead of diving into too much detail, I’m getting right to the action…

Showing you exactly where I stand on these trades.

Long:

1. Advanced Micro Devices Inc. (Nasdaq:AMD)
2. CSX Corp. (Nasdaq:CSX)
3. Macy’s Inc. (NYSE:M)

Short:

1. Apple Inc. (Nasdaq:AAPL)
2. AMC Entertainment Holdings Inc. (NYSE:AMC)
3. Penn National Gaming Inc. (Nasdaq:PENN)
4. Virgin Galactic Holdings Inc. (NYSE:SPCE)

Remember, being long means I’m bullish. I’d play any of these names with calls or call spreads to profit on future upside.

On the flipside, short means I’m bearish. And I’d use puts or put spreads to cash in on the downside.

Double the Live Trades – Coming Tomorrow

Tomorrow at noon sharp, I’m going live for Profit Takeover subscribers only.

We’re talking volatility, the Profit Takeover portfolio, and answering all of the best reader questions.

The best part? I’m dropping a live trade – one with the potential to make an asymmetric return. If you want to be the first to get this trade, then be sure to tune in. You can click here to sign up for text alerts, and be alerted the moment I go live.

But that’s not the only time you’ll get to see me live tomorrow…

Because at 7 PM, my colleagues and I are putting on the biggest trading event of the year: The Primetime Trading Summit.

You’ll get to see me, Kenny Glick, Chris Johnson, Garrett Baldwin, and Olivia Voz live and in action, dropping our best trades during primetime.

It’s like nothing we’ve ever done before – and you can register right here, right now to lock in your spot.

Tomorrow’s going to be great – and I can’t wait to talk to you twice.

VIX Traffic Light

My VIX light is red again today, as the S&P continues to rise and the VIX continues to fall.

Right now, the VIX sits at 16.5. And as I said yesterday, I see it hitting the 15-level by the end of this week.

Check out how I use the VIX to make money every day by checking out my free Profit Takeover report, The VIX: My Biggest Moneymaker in 20 Years of Trading.

Until tomorrow…

Mark Sebastian

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