The AI Stock Leading the Way

Yo Pit Crazies,

 

On a slow Monday, traders were parsing CPI tea leaves and once again seemed to be looking for an 80-point daily move in SPX. It certainly does feel bullish SPX and bearish VIX.

 

It is my contention that every name has an ideal position for a given time and place. I might not necessarily like the trade, but there is always an ideal trade based on market conditions.

 

Option trades need two things:

 

  • Intent: An opinion
  • Edge: Riding the vol wave

 

Those two things are in every trade I produce.

 

Yesterday, as I was poking around Capitol Gains and spotted the largest AI revenue company out there today.

 

We even have a position in it.

 

Palantir Technologies, Inc (Ticker: PLTR) Should Have A Profitable Year

In 2021, PLTR went from $12 to $35 and back again as the hot new tech stock.

 

In 2022, PLTR traded as low as $6.50 when the market tossed all the shiny new stocks into the trash.

 

PLTR reported surprisingly positive earnings and growth in AI. That’s right, real money from AI and the industry leader in AI software sales.

 

 

Up until now I have sold put spreads until PLTR turns the corner – and my early sales were not great.

 

My later sales have been better. I am currently short put spreads in PLTR in Cap Gains, which should go to zip on Tuesday.

 

If you are interested in taking Macro Ideas and turning them into trades, check out Capitol Gains.

 

All markets, all conditions … bring on the CPI!

 

To Your Trading Success,

AG

Andrew Giovinazzi

Andrew Giovinazzi

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About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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