Oversold Stock of the Day: Palantir Technologies (PLTR)
The mixed stock market trading of the past few days has caused a few companies to become oversold, even as most companies still trade near all-time highs. One company that’s seen a big drop in the past few days is Palantir Technologies (PLTR).
Shares dropped as the company reported mixed earnings. Shares have now dropped to around $25 from a price as high as $45 in intraday trading in the past month. Even with lower-than-expected consumer earnings, the big data company beat expectations from government clients.
That’s pushed the stock’s RSI, or relative strength index to 40. While not in oversold territory on a technical basis, shares have only seen the RSI this low in early November, before shares rocketed from $10 to $30 in the span of a few weeks.
- Man Who Predicted 2008 Crash: “The Mother of All Crashes is Coming”
If you've watched the movie The Big Short,you've heard of Michael Burry. He was one of the few who no only predicated the 2008 crash but profited from it.
He made $750 million for his investors and $100 million personally when his bet against the housing market paid off. His next big prediction?
He's warning the "mother of all crashes" is coming.
If you have any money in the markets, I urge you to click here and get the exact day of the next stock market crash.
Action to take: With a strong rebound likely in the works, shares may have a little more downside. However, they have far more upside in the coming months. Investors who don’t want to pay sizeable option premiums can buy shares here.
For traders, the May 2021 $30 calls have dropped to $4.90. At that price, they offer a decent upside with potential triple-digit return potential. That depends on the speed and strength of a rebound in shares. At the very least, traders can likely nab high-double-digit returns on the trade well before expiration.