Is Palantir (PLTR) a Good Buy in This Red Market?

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When the market turns red, most investors pull back. But seasoned traders know that red markets often create golden opportunities — you just have to know where to look. In this blog, we explore whether Palantir Technologies (PLTR) is one such opportunity, and how a simple covered call strategy can generate outsized income in just a week.

Market Red, Opportunity Green?

Mark Yegge, founder of The Cash Flow Machine, has long advised staying away from Palantir. Why? Because the stock had been topping out — making it risky for entry. But now, with PLTR forming a bullish double bottom pattern, he’s changing his tone.

Even though the broader market is still in a downtrend, PLTR is showing signs of strength. The key chart features include:

A confirmed double bottom structure.
A hammer candle with high volume (signaling reversal).
A breakout above the 50-day moving average.

Despite the red market backdrop, PLTR is flashing green technically. And that’s often when early opportunities emerge — before everyone else notices.

Why Covered Calls Make Sense Right Now

Covered calls are a smart way to profit even if the stock doesn't move — or moves sideways or even slightly down. The goal is to collect extrinsic value (the “juice”) from option premiums, while holding a core position in the stock.

In PLTR’s case, the numbers are impressive:

Buying 1,000 shares at $98 = $98,000 investment
Selling a 97 strike call brings in $5,325 in premium
That’s 5.4% income in just 9 days

Even better, if the trade is repeated weekly or bi-weekly, the annualized return exceeds 230% — all from premium income.

“You don’t need the stock to move. Just sit tight and collect the juice.” — Mark Yegge

This strategy is especially valuable in uncertain markets where capital preservation and consistent income are more important than speculative upside.

Go Deeper: Conservative vs Aggressive Strikes

Not everyone wants to sell calls just $1 below the stock price. If you want more downside protection, going deeper in-the-money offers a safer approach.

For instance, selling the 92 strike (with the stock at ~$98) still generates:

$3,950 in income (4%)
While giving you a 6% buffer on the downside
With a 66% chance of staying above that level, based on delta

It’s a risk-managed way to play the trade. As Mark says, this is the time to send a “probe” into the position. Start small with 100–200 shares, then pyramid in if the trade goes your way.

Life-Improving Tips from This Strategy

Don't Chase Trends – Let patterns like double bottoms and volume hammers confirm your entry points.
Sell Time, Not Direction – Selling options lets you profit from time decay, regardless of short-term stock movement.
Go In-the-Money for Safety – Deeper strike covered calls reduce downside risk while still generating solid income.
Use a Rules-Based System – Don’t trade on emotion. Have a defined plan for entries, exits, and adjustments.

Frequently Asked Questions

Q: What happens if my stock is called away?
A: Typically, it’s not. As Mark mentions, he rolls his positions weekly and is rarely assigned. Even if it is, you can buy the stock back.

Q: Isn’t the market too risky to invest right now?
A: Yes, it’s volatile. But with the right strategy — like in-the-money covered calls — you can buffer your downside and generate weekly cash flow.

Q: Why not just buy the stock and wait?
A: That’s a traditional approach. Selling calls generates income now, reducing your breakeven point and compounding your gains.

Call to Action

Are you tired of hoping stocks will go up just to break even? Learn how to flip the game by creating reliable weekly income using covered calls — even in red markets.

Join The Cash Flow Machine
Watch the full Palantir video breakdown on YouTube
Subscribe to Mark Yegge’s newsletter for more insights

Get started today

Conclusion

Palantir is shaping up to be a surprising opportunity — not just for long-term investors but for active traders looking for weekly income. With a bullish chart setup and juicy covered call premiums, PLTR may be your next smart move.

Remember: You don’t need to predict the market. You just need a system that pays you to wait.

Is Palantir (PLTR) a Good Buy in This Red Market?

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