As I’m sure you know, the entire cannabis sector has been in a free fall lately…

And no wonder.

Some of the biggest cannabis companies in the world are burning through cash at an unsustainable rate, which is why many of them – notably Tilray, Aurora Cannabis and Canopy Growth Corp. (NYSE: CGC) – are down about 80% over the last 52 weeks.

This news set up a volatile situation on Canopy Growth Corp. that War Room members were able to capitalize on last week.

On February 13, I explained the situation…

Maybe I’m overstating this, but come tomorrow, the fate of the pot industry will hang in the balance. CGC reports earnings before the open tomorrow – and it looks to be the “make or break” moment for cannabis. Either the sector dies tomorrow – lead down by the industry leader – or the sector marks the bottom – lead up by CGC earnings strength. Either way, I want us to be involved.

It was the perfect setup for one of our proprietary “Overnight Trades.”

The logic was simple…

With the industry-leading cannabis stock set to report earnings, the entire tone for the sector would be set going forward.

You’d either catch the bottom in cannabis or you’d profit off the sector’s death.

Either way, I wanted members to be positioned to ring the register – no matter what happened. And that’s exactly what they did.

Members paid a total of $2.79 for the combined trade of Canopy Growth Corp. March $19 puts (O:CGC 20O19.00D6) and the Canopy Growth Corp. March $20.50 calls (O:CGC 20C20.50D6).

This position is called a “strangle.” It gives you exposure to both a big up move – and a big down move. No matter what happens (as long as the move is large enough to cover the cost of the total position), you’ll profit.

What happened?

In terms of the “make or break” moment for the cannabis industry, Canopy Growth Corp. might have temporarily thrown the sector a much-needed lifeline.

The company’s shares moved up 22% after it reported quarterly results that beat expectations across the board.

Canopy Growth Corp. reported a 62% quarter-over-quarter jump in net revenue to $93.3 million, which was far ahead of the consensus estimate of $79.5 million.

Cannabis gross revenue rose 8% as Canopy Growth Corp. aggressively grew its market share, capturing 22% of Canada’s recreational pot sales.

Action Plan: In response to this upside reaction, members sold their Canopy Growth Corp. strangle for $4.25, good for an overnight winner of 51%. Going forward, if this news does give a much-needed lifeline to the cannabis sector, we could be looking at a bottom.

If so, adding some Canopy Growth Corp. exposure at these levels might be a smart move.

As for War Room members, here’s how they celebrated their Valentine’s Day – with money in their pockets!

“Just made over $1K, sure is a great morning.” – James M.

“In @ 1.78 out @ 3.51.” – Ian

“Made 58% gain! Great call B.” – Matt G.

“CGC up $2,508.00 Thank you Bryan!!” – John B.

“Quick $2,800…thx. The Puts might just be a bonus!” – RHARDONE

“In for a total of $2.93 ( know it was more than recommended) sold for $4.30 – was able to move Puts at opening 45%.” – Michael J.

“Thnx BB the quickest 500 bucks so far I ever made.” – Irfan M.

Want to start making profits like these? Join me in The War Room today!