This A.I. Stock Just POPPED
Welcome back to the Rude Awakening for Tuesday, March 23, 2021.
Looking at the markets this morning, Yahoo Finance’s stock market news headline reads “Stocks dip after Germany extends lockdown; traders await Powell.”
The major indices all opened down, though the Nasdaq is basically holding flat.
We’re still in a bullish trend, but our indicators continue to look tired.
Today, we are at a demarcation point.
That’s why today’s trading idea for you is based around high implied volatility…
Wild Swings on New AI Company
The idea with high IV trading ideas is to find expensive options to sell for higher premiums than they would normally get.
To do this successfully, we need to trade on stocks that have a lot of momentum pushing them up or down.
We have a play to do just that today using an AI company, Upstart Holdings, Inc. (UPST).
UPST, as they state, “operates a cloud-based artificial intelligence (AI) lending platform. The company’s platform aggregates consumer demand for loans and connects it to its network of the company’s AI-enabled bank partners.”
UPST has only been a publicly traded company since December 2020. They just reported earnings last week and the result was an explosion to the upside.
To find out how to play the momentum on this stock that’s seeing some wild swings right now…
Have a great trading day, folks.
Talk to you again tomorrow.
Editor, Rude Awakening