Rocket Companies $RKT has surged to the upside, resulting in our RKT 9/20 $20 calls doubling in value!
The contract traded at over $1 yesterday, giving us an excellent opportunity to sell half the position, effectively reducing the cost basis to zero.
*** The calls are currently trading around 0.80 at the time of this note. Depending on ones entry price, we want to enter limit orders to take ½ the position off at a double (if have not already done so). ***
We aim to secure profits like this as quickly as possible, and then enjoy a "free ride" with the remaining calls.
This approach embodies the core of the breakout multiplier strategy.
The idea is to put ourselves in a position where we can either win big OR lose nothing as often as possible.
Now, let’s take that capital and redeploy it into a fresh opportunity.
Here’s the notorious government contractor and AI play, Palantir $PLTR:
The company just smashed earnings and gapped higher for the fourth straight quarter!
In this time, their revenue growth rate has surged from 13% to 27% year-over-year and GAAP operating margins have gone from about 0% to over 15%.
This company has really turned the corner in the past year and we think the market continues to reward them.
The chart setup shows PLTR coming out of one of its tightest volatility compressions in years. As this is happening, price just shook to fresh 2-month lows before surging higher this morning.
We think this is the perfect whipsaw to propel the stock back to fresh cycle highs.
HERE'S THE TRADE
We want to get long the 9/20 $31 calls for $0.70 - $0.75.
If we get an oversold bounce from the broader market, we should be able to sell the double in this one in no time.
