Latest news with #DonKaufman
Yahoo
29-05-2025
- Business
- Yahoo
Palantir Technologies (PLTR) Is a Big Beneficiary of Call Buying by Retail Participants, Veteran Investor Says
Retail investors and traders "are buying massive amounts" of call options on Palantir Technologies Inc. (NASDAQ:PLTR), driving the shares higher, longtime investor Don Kaufman said during a recent appearance on Schwab Network. Kaufman is trying to exploit the trend by buying call options on PLTR himself. Kaufman is the co-founder of TheoTrade. By buying a huge number of call options on Palantir Technologies Inc. (NASDAQ:PLTR), individuals are forcing "market makers" to buy PLTR stock, Kaufman explained. That dynamic creates a "retail gamma squeeze" which causes the shares to climb, according to the investor. Kaufman bought calls with a $126 strike price that expire on June 20. He's also selling June 20 calls with a $130 strike price. His net premium on the trade is $1.55 per pair of options. "I'm trying to hop on board with the retail freight train that has become the primary driver of this market," he explained. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
03-04-2025
- Business
- Yahoo
Bearish Options Strategy on META Unveiled by Veteran Trader
Since Meta (META) has outperformed its large-cap peers in recent weeks, it's likely to underperform if the market, including the Nasdaq, sells off, Don Kaufman, a co-founder of TheoTrade, said on Schwab Network yesterday. With the market selling off sharply today, Kaufman's thesis looks set to be put to the test. He discussed an options strategy that investors can use to profit from a decline of META stock over the next 10 weeks or so. The longtime trader recommended buying the $535 puts on Meta that expire on June 20 and selling the $525 puts that expire on the same day. He noted that traders who use this strategy will pay a net premium of $3 for each pair of puts. Meta's Chart Analyzed Appearing on the same segment as Kaufman, Schwab Network's Kevin Green reported that $530 to $540 could be an area of support for the name. He believes that the stock could fall to this level, and he identified $600 as an area of resistance. The Recent Price Action of META Stock In the last month, the shares have dropped 7%, while they are down 3.5% in the last three months. While we acknowledge the potential of META, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
