Risk appetite is back in a big way. Oil prices are sliding on hopes for a diplomatic resolution to reopen the Strait of Hormuz, Treasury yields are easing right along with it, and that combination has the Nasdaq pushing back toward record highs. Chipmakers are now on a six-day win streak, the longest since April, and the AI trade that looked shaky right after last week’s Fed hike has come roaring back.
That’s the kind of tape I want to be adding risk into, not fading. When the tailwind is this broad, I want the Stock Forecast Toolbox helping me find which name in the group still has the most room left to run rather than chasing whatever already ripped. Try it out for free!
With all this in mind, the name that came up for me today is Palantir (PLTR):
PLTR has been riding this AI-led bounce right along with the chip names, and with the broader tape near record territory, that’s exactly the kind of momentum I want confirmed before committing new capital. So I ran it through the Toolbox to see if the model agreed with what the chart is telling me:
The projection is pointing toward that $200 target, and with oil and yields easing while the AI trade gets a fresh bid, I like the odds of that thesis playing out over the coming weeks.
To structure the trade, I’m looking at the October 16th $185/$200 call debit spread, currently valued at about $5.10. That’s a solid discount to work with given where PLTR would need to land for this to pay off, and I don’t need the stock to run to $200 and hold there into expiration to make this work. If PLTR pushes meaningfully toward that target in the coming weeks, this spread has plenty of room to run well past double, and that’s the realistic outcome I’m planning around rather than chasing every last dollar of the maximum value.
As a reminder, the Forecast Toolbox doesn’t just give me one prediction every week or every day. It models out high probability moves for most listed stocks in the market. I can check every stock in my portfolio to make sure I’m positioned right when I’m holding my investments, and when I’m looking for a new trade, it provides a filtered list of some of the most explosive setups so I can find the next great idea for my trading portfolio.
Make sure to take advantage of the free 7-Day Trial of the Stock Forecast Toolbox so you can see what it can do for you!
If you have any questions, feel free to reach out.
Keith Harwood
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