3 AI Stocks I’m Buying Now ($66K New Position) - Options With Ryan

Summary

In this video, the presenter discusses the current market outlook, sharing insights on potential volatility and the delay of rate cuts. They also delve into their recent portfolio moves, including new positions in Nvidia, DoorDash, and Uber, all positioned to benefit from the AI revolution. The presenter highlights earnings reports from major companies and strategic trades, with a focus on using cash-secured puts to maximize returns. They emphasize long-term growth potential in AI-driven stocks and provide a glimpse into their strategy for navigating a potentially slower market rally towards year-end.

Takeaways

• 😀 The market is facing rising fear and volatility, with rate cuts potentially pushed out to early 2024. This may result in a slower uptrend going into Christmas.
• 😀 The YouTuber's portfolio is up by approximately $60K for the month of October, showcasing a 4.5% return on the account.
• 😀 Earnings next week include big reports from Palantir, Hims and Hers Health, Uber, Shopify, AMD, Arista, and Robinhood, which are key to the YouTuber's portfolio.
• 😀 The CME Fed Watch tool indicates a lower chance of a rate cut in December, with the likelihood of cuts being pushed to January or March 2024.
• 😀 The YouTuber suggests having about 20-25% cash on the sidelines due to rising volatility (VIX), which could provide an opportunity to buy the dip if the market experiences a correction.
• 😀 Nvidia's partnership with AI companies and its dominant position in the GPU market make it a strong long-term play. The stock is predicted to rise $10-$20 based on market expectations for earnings.
• 😀 Nvidia's growth in quantum AI, robotics (via Uber), and its semiconductor plant in Arizona position it well for future expansion in AI and tech.
• 😀 DoorDash is another stock added to the portfolio, with a focus on its potential growth through autonomous delivery vehicles and increasing demand for convenience and time-saving services.
• 😀 The YouTuber took a $66K position in DoorDash by selling cash-secured puts, collecting premium and positioning for potential assignment at a 22% discount from all-time highs.
• 😀 Uber is another addition to the portfolio, with its low PE ratio and solid growth. Its partnership with Nvidia for autonomous vehicles adds a promising upside to the stock.
• 😀 Netflix is set to be added to the portfolio after its 10-for-1 stock split, which will make it more accessible for options trading, and the stock's future is bullish due to its dominant position in streaming and growing subscription fees.

Q & A

What is the main purpose of the video?

The main purpose of the video is to discuss where the market may be headed next week, highlight the creator’s $80,000 position in two AI-related stocks, and provide transparency on his portfolio performance for October.

What was the speaker’s portfolio performance for October?

The portfolio generated around $51,000 in profit, which was expected to rise to approximately $60,000 after Amazon shares were called away, representing about a 4.5% monthly return.

Which tool does the speaker use to monitor rate cut probabilities?

The speaker uses the CME FedWatch Tool to analyze market expectations for upcoming Federal Reserve interest rate cuts.

What did the CME FedWatch Tool indicate about potential rate cuts in December?

The tool showed that the probability of a rate cut in December had fallen to 62%, suggesting that cuts might be delayed until January or March.

How does the speaker use the VIX (Volatility Index) to determine cash allocation?

The speaker adjusts his cash allocation based on VIX levels; when the VIX is between 15 and 20, he prefers to keep 20–25% of his portfolio in cash to be prepared for market dips.

Which three main stocks did the speaker focus on adding or increasing in his portfolio?

The speaker focused on Nvidia, DoorDash, and Uber—each chosen for their growth potential and connection to AI or robotics technologies.

Why is the speaker bullish on Nvidia?

He believes Nvidia is well-positioned to benefit from the AI revolution, citing partnerships across AI sectors, a reasonable valuation (around a 58 PE ratio), and strong projected growth in the GPU market.

What was the rationale for adding DoorDash to the portfolio?

DoorDash was added for its potential long-term growth, especially as AI and robotics could enable autonomous delivery. The speaker also cited its strong user base and relevance in a convenience-driven economy.

Why did the speaker also invest in Uber?

Uber was chosen for its low PE ratio (around 16), strong fundamentals, steady upward price trend, and partnership with Nvidia in autonomous vehicle technology.

What did the speaker mention about Netflix and its stock split?

Netflix announced a 10-for-1 stock split, which the speaker views as an opportunity to make the stock more accessible for the wheel strategy. He plans to add Netflix to his portfolio on November 17, anticipating positive momentum after the split.

What is the overall market outlook according to the speaker?

The speaker expects some short-term volatility due to delayed rate cuts and rising fear levels but remains bullish long-term, believing the market will finish the year higher.

What trading strategy does the speaker commonly use?

He primarily uses the wheel strategy, selling cash-secured puts to generate premium income and potentially acquire shares at discounted prices.