Latest news with #ProsperTradingAcademy
Yahoo
10-05-2025
- Business
- Yahoo
Trader Suggests Potential Bullish Options Strategies Involving Palantir Technologies (PLTR) Stock
Scott Bauer, appearing on Schwab Network yesterday, suggested potential bullish options strategies involving Palantir Technologies (PLTR) stock in the wake of its first-quarter earnings report. Bauer is the CEO of the Prosper Trading Academy. On the same segment, Rick Ducat, the network's Lead Market Technician, analyzed the technical status of Palantir Technologies (PLTR) stock. Bauer's Potential Options Strategies The trader is waiting for the shares to fall to the "$105 area" before pulling the trigger on his bullish options strategy. "If the stock drops further, the opportunity is really there for some nice" gains, Bauer said. The trader was considering buying calls that expire on May 30, and he was looking to employ a $110 to $120 call spread strategy while paying a premium of about $3. Alternatively, traders can sell puts on the name, he said. Ducat's Technical Analysis Palantir Technologies (PLTR) tested the 21-day exponential moving average recently but did not quite fall to that level, Ducat said. Similarly, it never reached the key $105 level which was also cited by Bauer. The stock's Relative Strength Interval "was below overbought levels," but the shares' RSI stayed above 50, indicating that they retain "bullish momentum," added the market technician. Key upside levels include the "double top" level near $125 and the "plus 1 standard deviation channel just below $135," noted Ducat. While we acknowledge the potential of PLTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this . 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 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
Veteran Trader Suggests Selling Puts on UnitedHealth (UNH)
Using an idea proposed by Prosper Trading Academy CEO Scott Bauer, traders can profit from UnitedHealth (UNH) staying around its current levels, Bauer said on Schwab Network recently. During the same segment, Rick Ducat, Schwab's Lead Market Technician, analyzed the technical status of UNH. A senior healthcare professional giving advice to a patient in a clinic. Bauer's Trading Idea Traders should look into selling the $420 puts that expire on May 2 and selling the $430 puts that expire on the same day, Bauer said. Bauer is carrying out the trade partly because he expects UNH to stay around the $430 level, he noted. Additionally, the trader reported that the deal nets traders about $4 of premiums. The breakeven mark on the trade is $426, he noted. Bauer is looking to buy the shares around $425. UNH Is Closing in on "Oversold" Levels, Ducat Reports UNH recently reached new lows, but its Relative Strength Index, closing in on 30, is "shifting towards the oversold area," Ducat stated. On the other hand, the shares are way below the moving averages tracked by Ducat, which are around $530. The technical analyst cited $490 and $530 as important upside areas to keep an eye on. While we acknowledge the potential of UNH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this . 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
16-04-2025
- Business
- Yahoo
Making sense of the action in the VIX
The CBOE Volatility Index, also known as the VIX, helps traders gauge the level of expected volatility in the stock market. The VIX has spiked since the announcement of President Trump's tariff plans. In the video above, Prosper Trading Academy CEO Scott Bauer helps investors make sense of the action in the closely watched index. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. The market has seen outside swings to both the upside and downside due to tariff whiplash. The volatility index soared last week to the highest since early 2020. That's according to Bloomberg, as investors continue to grapple with uncertainty. Where does this leave the options market? Prosper Trading Academy CEO Scott Bauer joins us now to discuss in the Options Pit sponsored by Tastytrade. Scott, it's good to see you so uh. You too, Josh. May I start here, Scott? Listen, um lots of volatility in this market. What kind of opportunities do you think, Scott, that that presents to investors, especially maybe Scott investors who are who are listening right now and and they're new to options? Sure. So if you're following the VIX and I'm standing here in the VIX pit at the CBOE. If you're following the VIX, something to remember is if you see a VIX more normalized long term around 16, that's equivalent to about a 1% move in daily moving the S&Ps. 32, which is pretty much where we're at right now, that's a 2% daily move. 48, 3%, so on and so forth. When we see this elevated level 30 or above, it typically does not stay here very long. In fact, if you look at historically going back to when the VIX started back in in the mid to early 90s here, uh above 30 is, you know, maybe it stays for a few days, maybe we see a week. And then we normalize here. In fact, over the history of the VIX, anytime it's really soared and it's gotten above 50, which is really kind of a capitulation panic level for most investors here. That year, the returns and moving forward have all been positive. So is this time different? You guys were just talking, maybe this time is different. You know, when we go through these cycles, we always say that, whether it was COVID, whether it was, you know, the Y2K issues, whether it was a great financial crisis. Is this time different? Maybe. It's it you know, I'm not an investment advisor, I'm a trader. So it's easy for me to just say, hang on, hold on in there. The opportunity really is though, quite frankly, to sell some volatility. Kind of a broader question, Scott, too, just why I have you. I mean, you have been, listen, Scott, you've been thinking about, studying, and trading these markets for a long time. Especially in a day like this, I think a lot of people, some people at least, they, you know, investors get nervous when they see a day like this. Just broader, Scott, I just it's really what you make of these markets. Well, it it's difficult. It's really difficult to be honest because we really haven't been through a time before, regardless of the periods of time where we've seen the VIX spike, where we know the markets can change in a heartbeat, literally in a second on a tweet, on a you know, a news clipping. We have not been through that before. So I think this time going through here, that uncertainty is heightening that VIX level, is heightening, you know, some some of the nervousness that people are feeling out there. And the fact that we keep seeing changes almost on a daily basis coming out of the administration is also a very unsettling feeling. This too shall pass, but is it going to be a matter of days, weeks, months? Is it going to continue through the end of the year? I can't tell you that. I know that the opportunities to trade though are excellent. The markets in the VIX, the markets in the S&P, they're deep, they're robust, they're liquid. So as a trader, it's great. If you're a longer term investor, you probably just got to look historically and say, all right, I'm along for the ride. And Scott, we were talking earlier about semiconductors and the different opportunities there. I know you have some ideas around TSM. Can you give us some trade color on that and what you see in the options market? Absolutely. You know, it's really tough just because of the the constant news cycle. If it weren't for what's going on right now, I have no qualms that TSM would be a $200 plus stock. But we do have, you know, the current news cycle to contend with. Earnings tomorrow morning, I want to be long this stock even in the face of everything that's going on. So what I am doing is I am selling tomorrow's, excuse me, next week's expiring 150, 140 put spread. $10 wide put spread. Could have done that for about three, three and a half dollars today, which was a lot of premium. I normally would not sell a put spread that wide, but looking at this stock, I want to be long this stock 146, 147 area if it were to come down there. So I don't mind selling this put spread, getting the extensive premium, and then seeing what happens. Again, if I had a longer time horizon on this, if it was more of an investment than a trade, I would probably look at it a little bit differently. Scott, great to see you and have you on the show today. Thanks for joining us. Thanks so much.
