Good Morning!

I have a trade to share with you today based on the options flow that came in yesterday. Based on that information, I’ve only got this one position to share and a little backing as to why I am bullish.

AREC is a small cap stock priced at around $3.83 per share as I share this. Often times, small caps like these do not get a ton of options volume. They received nearly a million dollars in call volume yesterday as well as some puts being sold (which is also bullish).

Shortly after call volume started coming in there was a report released by the white house that includes AREC. They are a rare earths mining operation. The white house is tapping them to for the USA to become more mineral independent.

Now, political affiliations aside (I remain neutral here as I am individually focused on markets) this has been an industry getting a lot of attention lately. This stock is also a former runner that I believe could run again.

I have taken a position in shares. I decided to go with shares instead of any options contract as it gives me more time for the story to play out here. That way if it takes a bit more time to get the return I’d like to see.

My cost basis is around $3.85 per share. I discuss more in my YouTube video below!

Talk soon!

-Caleb