How to Make Money NOW… While the Bulls Are Still Running

Wow, what an opening for 2010!

After two odd months of running on rails, the market finally busted up and out of its trading range. All and all, that's a pretty good start for the year… especially with the news that pending home sales fell some 16% back in November.

But let's not forget for a moment what is pushing the market upward: free money.

With lending rates hovering somewhere between little and naught, American companies have access to virtually free capital. Heck, in certain cases, the government even forced companies to take suitcases of free cash.

Yeah, yeah, I hear all about how the banks aren't lending to desperate homeowners or busted small-business operators and all that. And while I really wish they would do something about that, don't think for a moment that the big blue chips are getting the same treatment.

Back when I still had the chutzpah to be an entrepreneur, we used to have a joke about such things: "A guy who asks a bank for a buck is a pan handler. If he wants a grand, he's a robber. Ask for $10K, and you're a 'client.' But what do you call someone who owes a bank 10 million dollars? 'Sir!' as in 'What else can I do for you today, sir!'"

How Long Can This Cycle Last?

There is, of course, an inherent limit on how long we can run like this. The only thing holding back inflation right now is low wage demand stemming from high unemployment. And that situation will only last another few months as we run into the next election cycle.

I figure we've got somewhere between 12 and 24 months before this rising cycle dies the same death as the previous two. And even that prediction is based entirely on current evidence. This is, of course, a mid-term rising leg within a long-term falling market, and is therefore somewhat "accident prone," if you know what I mean.

The takeaway from all this? We need to remain really, really alert, and we need to make our money now, while the making is good.

Getting In on This Punished Big Pharma

The health sector was unduly punished by folks worried that somehow, these guys would get the short end of the stick in Washington's big health insurance overhaul. But now we can see that K-Street lobbyists still rule the roost, and in fact, many of these companies will come out looking better than ever.

Our WaveStrength Options Weekly members have already made some pretty decent gains on various health, bio and pharma top 10 stocks for 2011. And I think that we (and you too!) can continue this run in the first half of 2010. But where should we look?

Well, my candidate for your consideration could be perfect for more investment gains since it takes advantage of a longer-term trend for mere pennies on the dollar.

It's the Big Pharma leader Pfizer (PFE:NYSE).

Down and Out?

As you may or may not know, Pfizer earns $45 billion per quarter from major drugs such as Lipitor (for elevated cholesterol), Norvasc (for hypertension), Aricept (for Alzheimer's), Celebrex (for arthritis pain), Viagra (for erectile dysfunction), Detrol and Toviaz (for overactive bladder), and Genotropin (for growth disorders).

With a profit margin of 17.75% and quarterly earnings growth of 26.30%, PFE is one of the few companies that has been able to withstand the current recession. But Wall Street has completely written the company off.

Pfizer used to trade for, what, $50? Investors used to tolerate a P/E over $45! Heck, they used brag about it! But that was waaaaay back at the beginning of this miserable decade.

If we take a more localized look to January of 2008, you'd have paid $24 per share. By March of 2009, you could pick up PFE for less than half that!

Basically, over the last 52 weeks PFE has gained only 4.24%, which is far inferior to the S&P 500's change of 22.16% over the same time frame. But as odd as it may sound, this underperformance sets the stage for this investment strategy for you.

How to Make Money When Wall Street Isn't Looking

That may sound crazy to you. After all, why would you buy top stock in a company that's "down and out?"

Well, that description can't be further from the truth!

Like I said earlier, the geniuses on the Street have apparently written this Big Pharma off. And this could be the perfect time for you to bank some cash when the others are looking in the opposite direction.

You see, since the company's low point, trading behavior has normalized. And as I mentioned earlier, we have seen PFE post gains over the past year. In fact, for the past 10 months, shares have been grinding upward at a pretty steady pace of 6% or 7% a month. Current share price is around $19.50, with a P/E somewhere around 16.

And according to my WaveStrength Options Weekly (WOW) charts, PFE is now set to move from those current levels up to targets at $20.13… $22.92… and possibly even 26 bucks. A nice potential 33% gain for your portfolio!

Now on the surface, that might not appear to be a dramatic upside move that you're hoping for. But frankly, I'd take a 30%+ winner any day.

Ready to Take the Next Step… To Bigger Profits?

But if that 33% potential winner isn't enough for you… If you're interested in bigger and faster gains, then all you have to do is look at the current price premiums of the PFE options. After years of punishment, PFE's option string is discounted (just like the company's share price). So there is ample opportunity to pull down the sort of short to mid-term gains we need to see before this market turns tail on us.

That's what I just recommended to my WOW readers: Calls on Pfizer. Calls that are a remarkably cheap deal… And option calls that could deliver a whopping 306% gain.

And like I mentioned, when you consider the super-cheap carry cost of these calls, it won't take much to achieve such a powerful return.

Recommendation: Whether you go the way of buying shares or the more lucrative option calls, consider Pfizer (PFZ:NYSE) for your portfolio.

And if you'd like to learn more about investing – and profiting – with options, you should check out my service, WaveStrength Options Weekly (WOW). With an options service like WOW, you can make big gains, fast. I'm talking about gains that absolutely crush ordinary stock investing, CDs, IRAs and just about anything else you can think of. Big-time triple-digit winners like 175%, 307%, 387%, 190%, 251%, 360%, 493%... even 500%.