“Electric Budgets”

Hey Influence Traders,

It’s not just the Weekend – it’s my birthday weekend!

My wife made a #powermove and threw me a big one.

I had surprise guests, surprise dinners, golf, and midnight karaoke at a great Korean bar.

And last week, we saw a big #powermove as Mark Sebastian, Andrew Giovinazzi, and Bill Griffo teamed up for a special “triple threat” mentorship event.

Not only did they release five exciting trades, but they also offered a pretty incredible opportunity to attendees … you can see more about it here.

I am definitely going to need to recharge the batteries after the past few days.

EV Acceleration

Speaking of batteries, Nissan Motor Company (Ticker: NSANY), the largest auto manufacturer in Japan, has joined a growing list of carmakers to accelerate the move to electric vehicles.

CEO Makoto Uchida said “the pandemic has made us more conscious of the future – there’s an increased focus on climate change. While electrification has been a significant trend in the automotive industry, the pace has been accelerated recently.”

Audi AG (Ticker: AUDVF) recently announced that it will go all electric by 2026.

Between budgets in the US pushing for more EV adoption and the European Union pledging to be fossil fuel free by 2050, I’m going to keep an eye on NSANY and AUDVF.

DC Moves

The Senate unveiled a $3.5 trillion budget proposal that, if passed, will reshape the government’s role in some parts of the economy.

President Biden believes that the $3.5 trillion budget proposal is necessary to rebuild the American middle class, lift people out of poverty, and address climate change by:

      • Adding years of guaranteed public education to fight inequality
      • Lifting more women into the workforce with subsidized child care and paid leave
      • Sending monthly checks to parents to reduce child poverty
      • Expanding Medicare beyond Biden’s own health care proposals to include dental and vision coverage
      • Imposing massive taxes on corporations, high earners, and the greenhouse gas emissions that drive climate change

The proposal is still short on many specifics. For example, to address climate change, Democrats want to tax imports from countries that don’t have strong policies aimed at combating climate change. They are calling it a “polluter import fee” but did not give any specifics on its application.

The scope of the proposal, particularly the poverty and climate provisions, shows the growing influence of Senator Bernie Sanders who is chairman of the Senate Budget Committee.

He wants to make some portions of the bill, like sending monthly checks to parents, a permanent feature of the government.

The lack of clarity on the details, including how much of it will be paid for, further shows Sanders’s influence.

The $3.5 trillion proposal is one part of the $4 trillion economic program that the President is trying to get passed.

The other entails spending nearly $600 billion to upgrade roads, bridges, water pipes, broadband, and other physical infrastructure. 

The President has reached a tentative agreement with a bipartisan group of centrist senators to move that through. I’m monitoring that too to see who will benefit the most.

The Power Moves Portfolio

Andrew made a small adjustment to our Palantir Technologies Inc. (Ticker: PLTR) trade idea.

The July 23 23-strike calls went to $0.10, so our short leg went out worthless, which is good.  We took the credit from those calls and bought five PLTR July 30 20-strike puts for $0.32. 

The plan is to close the puts if the market sells off. PLTR can have steep drawdowns, and we want to be ready. If PLTR rockets, we are naked long the Aug. 06 21-strike calls.

This week we bought:

Four PLTR July 23/Aug. 06 21/23-strike diagonal call spreads for $1.50.

I like PLTR as a long-term hold, but the stock is very “range bound” so Andrew is using a diagonal call spread to generate some income dollars before earnings. We’ve found when trading this name that waiting for pullbacks is the best play, and PLTR is currently $5 off of recent highs.

I’ve also been eyeing several other big cyber security names. Ping Identity Holding Company (Ticker: PING) looks like a good candidate for cheap options. If the PLTR plays pay, we’ll most likely roll into PING.

 

PLTR 6 month price and volatility chart

The live updated trade log is here.

And BIG news coming soon for the #PowerMoves portfolio.

Cutting Through the Noise for You.

Frank Gregory

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