Is The Market Cooked? Palantir $65 Yikes

Author

Ryan Hildreth
January 10, 2025

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Hey Options Trader,

Today was another wild day. The $VIX (fear index) briefly spiked above 20, which means the fear is back! Now, don’t get panicked out of your positions. If you have cash, this is a wonderful options selling opportunity because premiums are rich right now. I will get into where we might be headed and why the market did what it did.

Here’s what we are covering:

  1. $QQQ and $VIX - What caused the continuation of the pullback?

  2. $PLTR - $65 support hit, can we go lower? My fear projected today

  3. Top 3 LEAPs To Buy For 2025 - All Stocks Are In Buy Zone

$QQQ and $VIX - What caused the pullback continuation?

So we had non farm payrolls numbers released today. They came in good. Better than expectations. Thats a good thing right?

For the economy, yes this is a good thing, but for increasing chances for another 2 interest rate cuts this year, no this is not good. Strengthening labor markets, means more people have money to spend which could hinder inflation from reaching the Federal Reserve’s 2% target.

Surprisingly, I thought the markets would be down much worse and the $VIX would be at 25.

My take is we either get a flush to $495-$500 on QQQ on the open Monday morning and we resume upwards…

or

We open up higher and we resume upwards….

Either way we resume upwards and the market tends to forget yesterdays news. The economy is strong. There is still 1-2 rate cuts projected this year. Trump gets inaugurated Jan 20th which is good for businesses and consumers.

Be prepared to take advantage of one last flush on Monday or position yourself if we move higher.

$QQQ could flush to $495 or $500 for one last major pullback

$VIX looks undecided, Monday will tell us. Be prepared for spike.

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$PLTR - $65 support hit, can we go lower? My fear projected today

Today was one of those days….

I was up $15,000+ on my Palantir LEAPS just last week and now im negative -$2000. I caught myself eyeing the keyboard and debating on hitting the SELL button on half my LEAPS position.

I walked away from the computer and asked myself. Why did I get into the position in the first place?

My conviction on Palantir is that it is going to $120 to $140 in 2025. They are one of the key players in Artificial Intelligence and Ai Defense. They secured many new contracts in the past 60 days.

With that being said, I slapped myself and got back to work. In fact, I wish I had more cash to buy LEAPS and triple down right here, but its stuck in $NVDA (which I also believe is going to breakout).

The point of the story is…when the overall market is down, your individual stocks are most likely going to be down EVEN MORE.

Don’t change your conviction because of market sell offs.

My position: 15 LEAPS call options 1yr and 2yrs out 45,55,60 strikes

+6 cash secured puts at $67 and $70

2nd day break of lower Bollinger band…once a year opportunity.

Top 3 LEAPS Options To Buy 2025 (All Buy Zones Hit Today)

Enjoy your weekend and prep for Monday’s open. We could get one last buy opportunity! (or put selling opportunity for my theta gang 😉)

-Ryan