This is a mighty COVID treatment play. It's a coin flip whether it will break up or down out of the blue dashed wedge, but when it does. . . there are many place it can go. Options prices remain elevated even for $10 strikes (around the lower ascending channel). All depends on the Phase III trial data and analysis.
Personally, I bought 1000 shares in the February pullback before the mega rally, sold into strength, and still hold 150. I've been selling $10, $15 and $17.5 strike weekly puts and taking profits at 50% to 75%. I will take any long red candles as an opportunity to sell lower-strike puts.
So my bias is long, but to sell into strength. Caveat emptor.
Personally, I bought 1000 shares in the February pullback before the mega rally, sold into strength, and still hold 150. I've been selling $10, $15 and $17.5 strike weekly puts and taking profits at 50% to 75%. I will take any long red candles as an opportunity to sell lower-strike puts.
So my bias is long, but to sell into strength. Caveat emptor.
Comentarios:
PLTR is out of the wedge to the downside, and the first bounce zone is $12-13.