Plug Power Inc. (PLUG)

Dec 30, 2020Trade Ideas

With Joe Biden heading to the White House, green stocks could see a good deal of upside.

For one, “A Biden administration will mean more regulatory scrutiny for financial and energy stocks and probably higher taxes across the board,” says Rodney Johnson, president of economic research firm HS Dent Publishing, as quoted by Kiplinger. “But there will be opportunities. Infrastructure spending, green energy and health care are all Democratic priorities and should do well under a Biden presidency.”

Two, Biden has already said the U.S. will rejoin the Paris Climate Accord. And three, Biden mentioned $2 trillion clean energy plan, with hopes for net zero emissions by 2050.

Those are all bullish catalysts for green stocks, like Plug Power (PLUG), which are still in strong uptrends. Granted, the PLUG stock is a bit over-extended after running from $15 to $34. However, a recent pullback gives us opportunity.

We can trade PLUG three ways.

One, we can buy the PLUG stock with a near-term price target of $40. Two, we can buy to open the PLUG February 19, 2021 34 calls. And, if you want to hedge the long bets, you can buy to open a small position in the PLUG Feb. 19, 2021 33 put, as well.

To you and yours, have a very happy, healthy, and profitable New Year. Best wishes.

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