⚠️WATCH BEFORE MONDAY 9:30AM! I BOUGHT $25k WORTH OF LEAPS OPTIONS

Summary

In this video, the speaker discusses the current market conditions, emphasizing the opportunity for substantial gains in the coming weeks. They explain how the market has already priced in negative news, such as tariffs, and highlight key indicators like the VIX and S5FI index to suggest a market bottom. The speaker shares their bullish outlook on QQQ, Palantir, and Tesla, explaining their strategies for trading LEAPS options and positioning for upside potential. They also provide insights into risk management, option expiration timelines, and their specific trades for the near future.

Takeaways

• 😀 The market is expected to rally soon, with potential for many to become millionaires by taking advantage of upcoming opportunities.
• 😀 Despite the current fear in the market, particularly due to tariffs, the market has already priced in the worst news.
• 😀 The VIX, a key fear gauge, has spiked and is now retracting, signaling that fear in the market is subsiding.
• 😀 The S5FI indicator shows that the majority of S&P 500 stocks are oversold, indicating a buying opportunity similar to previous market bottoms (e.g., 2022 and March 2020).
• 😀 The current market structure is bullish, with higher lows forming on the QQQ, signaling potential upside movement.
• 😀 Despite possible short-term downside swings, the overall market potential for upside (around 20%) is greater than the downside risk (about 11%).
• 😀 The expert recommends using LEAPS call options for long-term trades to capitalize on market recovery, specifically in QQQ and other stocks like Palantir and Tesla.
• 😀 The expert has purchased long-dated call options (June 18th, 2026) for QQQ, anticipating a rise in the market and a potential surge to 500.
• 😀 Buying LEAPS with longer expiration dates helps mitigate risks associated with short-term volatility and theta decay in options pricing.
• 😀 For Palantir, the expert sees potential for a price rise above $90, especially after earnings, and recommends buying long-dated options for a longer-term hold.
• 😀 Tesla is also seen as having massive potential, with the expert suggesting a long-term play if a significant pullback occurs after earnings later this month.

Q & A

Why does the speaker believe many millionaires will be made in the next few weeks?

The speaker believes that current market conditions, especially the fear and volatility, present an opportunity for significant upside. As fear subsides and the market stabilizes, those who take advantage of this moment could see substantial gains, potentially leading to the creation of many new millionaires.

What indicator is used to identify when the market has bottomed?

The speaker uses the combination of the VIX (Volatility Index) and the S5FI (S&P 500 stocks above their 50-day moving average) indicator. When the S5FI is extremely low and the VIX is elevated but starting to subside, it signals that the market may be nearing its bottom.

What does the VIX indicate about the market's current state?

The VIX is currently elevated at around 38, which signals a high level of fear in the market. However, this fear is starting to subside as the VIX begins to retract. The speaker interprets this as an opportunity to capitalize on the market's potential recovery.

What is the significance of the S5FI indicator reaching low levels?

When the S5FI indicator is low, it indicates that the majority of S&P 500 stocks are trading below their 50-day moving average, suggesting that the market is oversold. This is a sign that stocks may be undervalued, and institutions and traders could start buying up shares for long-term gains.

Why is the speaker focusing on QQQ for potential upside?

The speaker is focusing on QQQ because it has shown a bullish structure, with higher lows forming, and there is significant upside potential. With the worst news already priced in, the speaker believes the probability of a market rally is high, particularly in QQQ, which tracks the NASDAQ index.

What are LEAPS options, and why is the speaker using them?

LEAPS (Long-Term Equity Anticipation Securities) are long-term options with expiration dates typically over a year away. The speaker uses LEAPS to take advantage of longer-term market trends while reducing the risk of short-term volatility. LEAPS give more time for the market to recover and for the trade to become profitable.

What is the reasoning behind choosing longer-dated options over shorter ones?

The speaker chooses longer-dated options because they decay at a slower rate, allowing more time for the market to move in the desired direction. In contrast, shorter-dated options are more sensitive to time decay (theta), which can lead to significant losses if the market doesn't move quickly in the right direction.

What specific stock trades is the speaker currently focused on?

The speaker is focused on QQQ, Palantir (PLTR), and Tesla (TSLA). For QQQ, they are buying LEAPS call options with a long expiration. For Palantir, the speaker is looking at $80 strike options and expects the stock to rise above $90. For Tesla, the speaker is interested in LEAPS but is already heavily invested in Tesla shares.

What does the speaker think about Palantir's potential?

The speaker believes Palantir has strong potential, especially if the stock breaks above the $90 level. Despite skepticism about the stock's valuation, Palantir has been performing stronger than the market, and the speaker expects it to rise further, especially after securing numerous partnerships.

How does the speaker view the risk of investing in the market right now?

The speaker acknowledges the risk of short-term pullbacks, with the possibility of a 5-7% downside. However, they believe that the market has already priced in the worst news and that the upside potential outweighs the risk. The speaker is positioning their portfolio to take advantage of the expected rally while managing risk by using LEAPS and cash-secured puts.