The technology sector has embarked on a rally that’s likely to maintain its momentum into next year. Our portfolio holdings are positioned to lead the way.

Let’s look at the news with our picks, as well as our latest advice.

• 22nd Century (NYSE: XXII)

The biotech firm’s third-quarter earnings per share of -$0.03 missed expectations a penny. However, revenue came in at $4.53 million, for a year-over-year gain of 46.1%. Revenue exceeded Wall Street’s expectations $53,000.

22nd Century’s proprietary Very Low Nicotine cigarettes continue to show that the FDA’s planned mandate for cigarettes with non-addictive levels of nicotine is practical. The biotech firm also bioengineers low-THC marijuana plants for medicinal purposes.

Medical marijuana is one of the hottest corners of the biotechnology sector for investors. The potential this apparent wonder-herb packs for alleviating symptoms of countless diseases, as well as its curative properties, makes biotech companies developing cannabis-based treatments among the most exciting and potentially lucrative investment opportunities today.

XXII remains a buy up to $7.00.

• Helmerich & Payne (NYSE: HP)

HP reported a net loss of $23 million or $(0.21) per diluted share from operating revenues of $532 million for the fourth quarter of fiscal 2017. For its fiscal year 2017, the company reported a net loss of $128 million or $(1.20) per diluted share from operating revenues of $1.8 billion. 

As with its peers, HP fell victim to energy price volatility. However, the company has invested in growth and has set the stage for renewed earnings momentum once energy prices renew their upward trajectory.

During its fiscal 2017, HP undertook the largest ramp-up of U.S. land rig activity in the company’s history. HP started the fiscal year with 95 rigs contracted in the U.S. and closed the year with 197 rigs, including an increase of 102 FlexRigs. The company’s most active basins today include the prolific Permian and Eagle Ford plays.

HP is a buy up to $80.

• Tencent Holdings (OTC: TCEHY)

The China-based Internet services and gaming company posted a 69% spike in third-quarter earnings, exceeding the consensus estimate. Growth was driven by the company’s smartphone games and payment-related services.

Earnings soared to 18 billion yuan ($2.72 billion), well past the average analyst estimate of 15.18 billion yuan. The company’s revenue rose 61% to 65 billion yuan, beating the analyst estimate of 60.78 billion yuan.

Tencent’s market capitalization has more than doubled this year, hitting $472 billion. However, the company’s shares have gotten pricey and are now due for consolidation.

TCEHY is a “hold.”

• YY (NSDQ: YY)

The China-based Internet streaming platform continues to outperform. YY reported revenue of $464.8 million, blowing past the consensus estimate of $423 million and up 48% from the same period a year ago. YY reported adjusted EPS of $1.59, also beating the consensus estimate of $1.45 and up 41% on a year-over-year basis. Revenue from livestreaming jumped 60% to $431.6 million.

YY is a pioneer in livestreaming services such as music, game broadcasting and e-learning. China continues to experience a boom in the use of livestreaming services, stemming from a lack of entertainment options in the country.

Buy YY up to $110.

Options Trades

• Tesla Motors (NSDQ: TSLA)

Tesla Motors 11/17/17 Sell Call $370 (TSLA171117C00370000)

Entry date: 04/24/17

Entry price: $14.80

Strategy: Sell Call

Strike Price: $370

Expire Date: 11/17/17

Equity Price (at market close on 11/17/17): $315.05

With this trade, we bet that TSLA stock was overvalued and would go down. We were right. The strike price is higher than the market price. We’re letting this call option expire in-the-money. Congratulations, you were just paid $1,480 for each contract for doing nothing.

• YY (NSDQ: YY)

YY 11/17/17 Buy Call $75 (YY171117C00075000)

Entry date: 07/29/17

Entry price: $8.30

Strategy: Buy Call

Strike Price: $75

Expire Date: 11/17/17

Equity Price (at market close on 11/17/17): $107.23

With this trade, we bet that YY stock would go up. Again, we were right. We’re letting this call option expire in-the-money. Your profit is $3,223 for each contract, which works out to a 288% gain!

John Persinos is chief investment strategist of Breakthrough Tech Profits.