Yo, Pit Crazies,

We are setting up for a huge move today. I am writing this as of Thursday Night before Mark’s Big Show but all the tell-tale signs are there.

Big Vol is the way No.

In an ugly market, I try to look for anomalies that can provide respite from the constant direction that the market is currently exhibiting.

Call it the old floor trader in me, but I can help but look for outliers.

Vol Man is digging the IV explosion in every name in the US equity space.  All IVs are up and that is saying something.

If you want to see what this one is, check it out here.

The Mystery Name in Palantir Technologies(Ticker: PLTR)

At one time in 2021 this was a $40 stock.

And even as late as Dec. 2021 it was low-20s.

Not so anymore!

I have been holding shares since $16.50, I am sad to say – and even took delivery at $9 on more.

The only reliable trade has been selling the 7-strike puts, which was $2 below the IPO price.

I did feel cocky selling the 7 puts and rolled up to the 9s in the summer rally.  Oh my.

When every other tech stock is getting crushed, this is for sure a trending green as noted in the Edge Hunter Moving Sheet on the left.

Almost every traded stock I follow has overvalued implied vols, which the sheet shows on the right in red. The market is saying find juice to sell.

PLTR Nov. 18 7 puts yield 5% on a straight sale.  Reminder, only sell puts if the intention is to take the stock since stocks do go down.  Of this I know.

The Rundown

Vol Trade Club

I closed a SPDR S&P 500 trust (Ticker: SPY)/Cboe Volatility Index (Ticker: VIX) pair for a 19% gain ahead of the number today.

Power Income Trader

Bill closed a US Oil Trust (Ticker: USO)/ Invesco QQQ Trust (Ticker: QQQ) pair for a 3% gain.

To Your Trading Success,

AG