In the whirlwind of the stock market, few moments shine as brightly as the explosive growth witnessed in weed-related stocks during 2021. A classic case in point involves stocks like Sundial Growers Inc. (SNDL) and Tilray, Inc. (TLRY), which skyrocketed to unprecedented heights, exemplifying the power of investing in major market themes. The story of these stocks illustrates how recognizing a trend can lead to substantial gains, often with relatively straightforward strategies.
In early 2021, both SNDL and TLRY became the darlings of the stock market, riding the wave of marijuana legalization buzz and increasing investor enthusiasm. At the start of January 2021, SNDL was trading around $0.50 per share. By February 10, 2021, just over a month later, it had surged to an astounding $3.89—an astronomical increase of approximately 678%. Meanwhile, TLRY, which began the year at around $6.73, soared to $67.00 by February 10, 2021, marking a staggering 894% gain.
But the gains weren’t limited to just the stock prices. Call options on these stocks experienced explosive returns. For instance, a call option on SNDL with a strike price of $1.00, expiring in February 2021, saw its value rocket from $0.05 to $1.50—a jaw-dropping 2,900% increase. Similarly, TLRY call options with a $20.00 strike price, expiring in February 2021, surged from $0.40 to $12.00, delivering a phenomenal 2,900% gain.
The surge in these stocks and their call options was emblematic of the broader hype surrounding the weed sector, a prime example of how investing in a major market theme can yield extraordinary returns. At the heart of this phenomenon was the cannabis industry, which had suddenly become a focal point of investor attention due to legislative changes, expanding legalization efforts, and growing public interest.
For those who were paying attention, the opportunity was clear. A simple Google search for “weed stocks” would have highlighted prominent players in the sector, such as SNDL and TLRY, allowing investors to jump on the trend early. The rise of these stocks was not merely a fluke; it was a clear signal of a major market theme that was resonating across financial media and social platforms.
Reflecting on this moment, it’s profound to realize how something that might have seemed like a passing trend could actually hold the key to significant financial gains. The key takeaway here is the importance of recognizing and acting upon market trends.
Sometimes, it’s not about having insider information or advanced trading strategies.
Sometimes, it’s about taking a moment to observe the hype, asking a simple question—”I wonder what stocks are related to {insert major news/topic}?”—and then acting on that insight.
In a world filled with complex investment strategies and market noise, the difference between missing out and seizing a golden opportunity can be just that one moment of clarity. It underscores how even seemingly insignificant or speculative moments can turn into significant opportunities, provided you’re ready to capitalize on them.
So, as you navigate the often turbulent waters of investing, remember the lesson from the weed stock boom: sometimes, all it takes is a moment of awareness to unlock extraordinary returns. Whether you’re a seasoned investor or just starting out, keeping an eye on major market themes and taking decisive action can make all the difference in your investment journey.
