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7 Binary Trades For The End Of 2016

ANTH, WBA, OCLCF, SPXL, NUGT, WFRD

Long-term investors know the key to success in the stock market is choosing the right stocks and remaining patient. However, some traders prefer more excitement.

Here is a look at seven stocks and ETFs that could see major instant upside before the end of the year.

1. Opthotech Corp (NASDAQ: OPHT)

Opthotech shares are down more than 29 percent in the past month on investor fears surrounding the company’s upcoming Phase III data. Despite the market skepticism, Citi analyst Yigal Nochomovitz believes the market is under-appreciating the Phase IIb Fovista data. If the Phase III data take the market by surprise, the stock could spike immediately.

2. Direxion Shares Exchange Traded Fund Trust (NYSE: NUGT)

When it comes to near-term catalysts, it doesn’t get much bigger than the upcoming election. As Donald Trump has surged in the polls in recent days, investors have been flocking to safety plays like gold and gold ETFs. The NUGT ETF is levered 3x, meaning any boost that a potential Trump victory gave to gold prices would be multiplied by three for NUGT traders.

3. Direxion Large Cap Bull 3X Shares (ETF) (NYSE: SPXL)

If making an aggressive bet on a Clinton victory and a potential Republican-controlled Congress is more preferable, analysts have speculated that this outcome would likely be best for stocks. The SPXL is a 3x levered S&P 500 ETF that traders could use to make big bets on a major post-election stock market breakout.

4. NetSuite Inc (NYSE: N)

With Oracle Corporation (NYSE: ORCL)'s offer of $109/share for a buyout finally accepted, the deal is official. NetSuite’s stock has at least 22 percent upside.

5. Weatherford International Plc (NYSE: WFT)

A potential OPEC deal to cap production fell through at a meeting in October, but OPEC plans to meet once again this month to discuss a production cap. Weatherford desperately needs higher oil prices, and an OPEC deal would likely have the stock regaining back much of its 32 percent one-month loss.

6. Anthera Pharmaceuticals Inc (NASDAQ: ANTH)

Last week, Anthera announced it will be presenting data on its leading lupus candidate, blisibimod, at the 2016 American Society of Nephrology’s Kidney Week Annual Meeting on November 18. Anthera currently trades at only $2.16/share, but its 52-week high of $6.30 suggests significant upside if the data is positive.

7. Rite Aid Corporation (NYSE: RAD)

Rite Aid finds itself in a similar position as NetSuite heading into the end of the year. Walgreens Boots Alliance Inc (NASDAQ: WBA) agreed to purchase Rite Aid for $9/share way back in October 2015. Regulators have since asked for more information from the two companies, presumably on anti-trust concerns. In its most recent earnings call, Walgreens’ CEO said the company expects the deal to close in Q1 2017. It appears as if Rite Aid's $6.50 shares will be heading hard in one direction or or the other within the next couple of months. 



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