ANOTHER Palantir Deal Secured, Tesla Approaches All Time Highs $450 In The Cards

Author

Ryan Hildreth
December 09, 2024

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Hey Options Trader,

What a crazy start to the trading week. Palantir jumps to fresh all time highs of $80.91, then quickly plummets to $71. Tesla approaches new all time highs. VIX spikes today. How do we play this volatility going into Christmas?

Here’s what we are covering:

  1. $QQQ & $VIX - fear spike leading to crash? or are we headed higher?

  2. $PLTR - Secures another deal, I added more of a specific option to my position.

  3. $TSLA - Why i’m adding to the portfolio next week

$QQQ and $VIX - Crash or not to crash?

The market was slightly down today but various stocks were up. This is what I like to call a “Rotation Day”. Investors are exiting some positions and rotating into others that may play out strongly in the next several months.

$QQQ seems to be trending higher and I am not fighting that trend. Every-time we meet the lower trend line, the index gets eaten up by more investors. If we get a pullback, expect no lower than $210. With Inflation data coming up this Wednesday, there could be a chance we get the pullback we were looking for. If the data comes in as expected, we should continue to melt up.

VIX saw a nice little spike today due to individual names bringing the market down. One of them being $NVDA. I grabbed the opportunity to sell additional cash secured puts on NVDA at the $131 strike expiring in January.

Overall, I think we melt higher for now.

I think we gap up to $540 to close out the year.

VIX spiked to $14 but retraced back. There is still no fear in the markets.

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$PLTR Secures Another Deal

Palantir announced this morning that they secured a deal with the USSOCOM (United States Special Operations Command) to deliver AI technology. The company shares quickly spiked up from $77 to $80.91 but quickly retreated an hour after the market open.

Since we saw a pullback to $71 today I believed that it was a great time to purchase 5 LEAPS contracts…totaling my position to 15 Call LEAPS contracts. My overall thesis is that PLTR can double from this point within the next 6-8 months so I wanted to finalize my position before we see this stock fly past $100.

Yes valuations are getting extended on this stock and that does go against my usual principles of good P/E ratio/good free cash flow, but Palantir has been outperforming, we are in an opportune moment for lowering interest rates in 2025, and I am keeping this company at no more than 10% of my holdings.

I will start trimming positions once we pass $100 on the stock next year.

$TSLA - Why I plan on adding this position to my portfolio?

Tesla is approaching all time highs made in 2021. The options are juicy with premium, which has always tempted me to trade options on the stock. The one thing I never put time into figuring out, is the business model.

Tesla is on the forefront of Artificial Intelligence. With the two recent focuses being AI humanoid robots and Autonomous Robo Taxi’s, I believe these will be game changers. Not only does the company have devout supporters, Elon has great relations with President Donald Trump. This will be an insulation to any downturn for at least the next 4 years.

I feel comfortable selling 30 delta puts and collecting 5% on my money for all of 2025.

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See you on Wednesday!

-Ryan