Rare earth stocks are back in the spotlight… and not just because of the latest round of U.S.-China saber-rattling and a trade “deal” that disappointed investors.
But if you think any rare earth ticker is your ticket to growth, think again.
In fact, I've just gone through more than two dozen names in this space. Some of them look decent at first glance — they're tied to a hot theme, they're in the news, and they're optionable.
But when you dig deeper, most of them don't make the cut.
So today, I want to focus on the only three that do and why they're the best in class for long-term growth.
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1. Energy Fuels Inc.
Energy Fuels (AMEX:UUUU) has had a wild ride over the last six months — and with good reason.
Not only is it one of the top uranium producers in the U.S., but it's also making a serious push into rare earth processing. This has given it a front-row seat in America's effort to cut dependence on China for critical materials.
Now we saw it climb into the high $20s recently before pulling back to below $20. But here's the key: it's still holding momentum.
That tells me it's a pullback in an uptrend, not a reversal. And if we're coming off a 38% correction, my projection shows a move up to $34 in play.
I'm not talking about next week or next month, either. I'm looking at this as a long-term options trader, not a short-term swing trader. So, I'm going all the way out to January 2027 in terms of trades.
And here's what I found:
- Current price: ~$20
- Target price: $34
- $20 calls (Jan 2027): trading around $10
That means if UUUU hits $34, those calls could be worth $14 — a potential 40% return over the next year or so.
Not bad, especially when you consider this is a high-probability Long-Term Equity Anticipation Securities (LEAPS) play, not a weekly lotto ticket.
But it's not my top pick. That honor goes to our next stock.
2. NioCorp Developments Ltd.
NioCorp (NASDAQ:NB) just ripped from $2 to over $12.50 and pulled back to $8, all within a month:
But here's the kicker: that pullback puts it right on top of a textbook 38% retracement level. And that often acts as a launchpad — especially if volume and momentum start to ramp up again.
NioCorp is working to bring niobium, scandium, and titanium to market — three critical minerals used in environmental services, defense systems, and clean energy infrastructure. With the U.S. government prioritizing domestic access to these resources, this dip might be short-lived.
So I went back to looking at the January 2027 options, this time for a potential call spread (specifically the January 2027 $7 and $12 calls).
And here's the most attractive setup I found:
- Entry: ~$5
- Max potential: $8 gain (if NB hits $16)
- Return: 60%+ if the move plays out
Now, if you go out and buy the $10 calls instead, they'll cost about $4, but your reward window shrinks. You'll pay $4 to make $6 max if it goes to $16.
That's just a little too much risk for not enough upside potential for my taste.
So in this case, the $7/$12 spread gives you the best balance of risk and reward — especially with the chart setting up right at a key technical level.
But our final pick? It might be the cleanest trade of all.
3. United States Antimony Corp.
United States Antimony Corp. (AMEX:UAMY) ran from under $2 to nearly $20. But even though it's pulled back, the trade setup is getting cleaner by the day.
You could even say that UAMY is the dark horse in this race — and the one with the most potential.
This is a domestic supplier of antimony, which is a critical material used in everything from fire retardants to military alloys. And with U.S. strategic stockpile chatter heating up, UAMY's positioning is tough to ignore.
So I did the same thing here and looked at the January 2027 options.
Here's what grabbed my attention:
- The $10 calls are going for just over $6
- That gives you a $14 potential move, from $10 to $24
- Even if you pay $7, you've got the potential to double your money
But even better?
The bid-ask spread on these calls is tight. That means your cost to get in (and more importantly, your cost to get out) is manageable.
That's crucial—especially in this market.
Because when you're holding LEAPs for a year or more, the last thing you want is to get burned by slippage. That's the hidden cost you pay when there's a big gap between what you want to pay and what the market actually gives you — usually because of low volume or wide spreads.
So, while UAMY might not be the flashiest name on the list, it's got a great chart, a clean trade structure, and strong liquidity on the option chain.
And that's precisely why it's my #1 rare earth pick right now.
Why These 3 Rare Earth Trades Work — And Most Others Don't
Look, everybody's chasing rare earth stocks right now.
And it makes sense, there's real momentum behind this space. Supply chains are shifting. Domestic production is ramping up. And geopolitical tensions aren't going away anytime soon.
But that doesn't mean you should buy the hype.
In fact, out of the over 25 names on my watchlist, only the three above met the standards I use for serious long-term trades.
And even then, I'm not blindly jumping in.
I'm calculating the targets. I'm weighing the risks. I'm analyzing the option chains down to the slippage.
Because when you're putting money on the line for the long haul (especially with LEAPs), you've got to stack the odds in your favor.
Trade smart. Use time to your advantage. And don't settle for "hot" names that can't hold their weight under the surface.
Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
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