Sorry, we have been a way for a bit but communicating with our private clients and friends. Here is what we have been primarily trading the last month, along with a quick trade on Palantir, which we are watching for the final turn and upwared trajectory.
Summer Skies or Turbulence Ahead? Analyzing F, ACHR, and RKLB's Recent Performance and Options Strategies
Greetings, traders! Buckle up, because the past few months have been a wild ride for growth stocks. Let's take a closer look at Ford (F), Archer Aviation (ACHR), and Rocket Lab (RKLB) to see how they've weathered the storm and explore some options strategies for navigating the coming months.
F - Ford Motor Company
- Returns: Despite a rough few months, F has actually shown some positive signs recently. After dipping roughly 20% since May, the stock has bounced back slightly, up around 6% this past week.
- News & Catalysts: Supply chain issues continue to be a concern, but Ford's recent investor day outlining its electric vehicle (EV) strategy offered a boost. Their commitment to a 40% EV sales mix by 2030 and the upcoming F-150 Lightning electric truck are positive developments. However, broader market sentiment remains a key factor.
Trading Strategies:
- Bullish Put Spreads: Considering the ongoing volatility, a bullish put spread could be a strategic option for F. This involves buying a lower strike put option and selling a higher strike put option with the same expiration date. It allows you to profit if the stock price stays flat or even rises slightly, while limiting your downside risk.
- Jan 25 12.17 Calls performed exceptionally well and we closed our position, albeit slightly early.
ACHR - Archer Aviation Inc.
- Returns: ACHR has been a standout performer, soaring over 50% since May! This surge comes on the heels of the company's successful eVTOL (electric vertical takeoff and landing) aircraft development and growing interest in the urban air mobility market.
- News & Catalysts: Investor confidence in Archer has been bolstered by a recent $55 million investment from Stellantis and the announcement of a planned San Francisco air mobility network. Additionally, ACHR's infrastructure deal with Signature Aviation grants them access to the largest network of private aviation terminals in the world – a significant advantage.
Trading Strategies:
- Long Calls: Given ACHR's positive momentum and the potential for explosive growth in the urban air mobility market, long calls could be an attractive option. This involves buying call options that give you the right, but not the obligation, to buy the stock at a certain price by a certain time.
RKLB - Rocket Lab USA Inc.
- Returns: Just like ACHR, RKLB has been on fire, up over 50% since May. Their successful launch cadence and growing backlog of missions are fueling investor confidence.
- News & Catalysts: The recent national security mission for the NRO signifies a crucial step for RKLB, potentially opening doors to lucrative government contracts. Additionally, the development of their next-generation Neutron rocket engine is a positive sign for future capabilities and potential cost reduction.
Trading Strategies:
- Primary Long Calls: RKLB's strong fundamentals and exciting future prospects make primary long calls a viable option. These calls offer the potential for significant returns if the stock price continues its upward trajectory. However, remember that long calls carry more risk than spreads as they have no built-in downside protection.
Remember: These are just a few ideas, and the right strategy depends on your individual risk tolerance and market outlook. It's crucial to conduct your own research before making any trades.
Disclaimer: This is not financial advice. Please consult with a financial professional before making any investment decisions.
