Dear Reader,
Palantir Technologies Inc. (NYSE:PLTR) is a software company whose AI tech has been in the news for the past few months. But news stories aside – what about the stock?
Well, it's up just 3.5% this year to date. That doesn't sound too exciting...
Until you look at the options, that is.
On September 21, I brought PLTR on my screen using my brand-new proprietary Asymmetric Trading System...
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The chart looked a little something like this. But I didn't care so much about the stock price's movement – I cared about the comparison between its implied and historical volatility.
Implied volatility (IV) is a measure of how far a stock is expected to move. Historical volatility (HV) measures how far it's already moved.
Why did I care? Well, comparing these two indicators is how you know whether a stock's options are cheap or expensive.
So I used my Asymmetric Trading System to pull up my favorite indicator: The IV/HV blend…
I could tell that PLTR's HV, marked in red, had just eclipsed its IV, marked in green… meaning options were cheap – and I wanted to get in.
So I recommended an 80-cent trade on the stock. An 80-cent option is equal to $80 per contract, making for a cheap trade anyone could do.
And just two days later, on September 23, boom – that 80-cent option was going for $1.60…
I recommend cheap option trades just like this one on PLTR every day the market's open – that means my next one comes tomorrow.
Learn how you can get it – and gain access to my Asymmetric Trading System – right here.
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The next time you hear from me, I hope it will be with your brand-new trade recommendation.
Sincerely,
Mark Sebastian
Volatility Trading Specialist, Money Map Press
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