Yo Pit Crazies,

One thing about stock markets is, everyone wants to get in at the bottom.

The problem with that?

No one knows where that bottom is, and when stocks get there no one wants them.

That is why they were cheap in the first place!

Sometimes stocks can make a bottom and several weeks later it is clear the bottom was in.

So the question is … Is it worth it to get in now?

Let’s take a look.

Palantir Technologies Inc. (Ticker: PLTR) Has Not Made A New Low in 3 Months

Why is that significant, you ask?

The first thing is, PLTR stopped going down.

Even when the S&P 500 kept testing new lows, PLTR didn’t.

I own some PLTR from a higher price and rolled puts all the way down to $7 strike where I stopped buying them.

I turned around and started selling them every month for $7, $8 and $9, which I recently closed.

If earnings are decent I will flip my stock to calls and look for more delta on the ride out, but I think the options prices are pretty cheap now.  

The market has a lot of stocks that have not made new lows and are coming back to some degree.

I am still avoiding the marquee QQQ names, but three months without a new low is good enough for me.

I do like this for Capitol Gains again post earnings.

The Rundown

Big Money Shopper 

Mark and Licia jammed an 88% gain in Nikola Inc. (Ticker: NKLA) calls today.

Big Money Flow

Mark found Wendy’s Inc. (Ticker: WEN) calls tasty to the tune of a 43% gain.

Cap Gains

I closed my Taiwan Semiconductor Mtg Co. (Ticker: TSM) and Invesco QQQ Trust (Ticker: QQQ) put butterfly for an 11% profit.

I closed a Ford Motor Co. (Ticker: F) strangle for 3% net gain.  I still like F to go higher, but that strangle was down and came back to up dollars,so I closed it and will reset.

Power Income Trader

Bill felt the power of an 18% gain in PowerShares DB $ Bullish ETF (Ticker: UUP) call spreads.

To Your Trading Success,

AG