Trade Alert: Buying The Dip

Bullish options bets on our current top name plus two other stocks.

Feb 28, 2025

∙ Paid

A dynamic and visually engaging illustration representing the concept of 'buying the dip' in the stock market. The image features a stylized stock chart with a sharp downward movement followed by a strong upward recovery, emphasizing a clear 'dip' point where a hand or a figure is confidently investing. The background includes financial elements like candlestick charts, green and red market indicators, and a bullish upward trend. The overall theme conveys opportunity, confidence, and strategic investing.

The Risk Of Buying The Dip

If we’re heading into a bear market, buying the dip might not pan out. To try to skew the odds in our favor a bit, I’m looking for three different kinds of stocks:

Portfolio Armor top names, particularly ones exhibiting our strongest factor (a measure of options market sentiment). In last night’s top ten names, only our number one name exhibited this factor.
Under valued, oversold names. Today’s example of this category has a Chartmill overall valuation rating of 9 (out of 10), a Piotroski F-Score of 8 (out of 9), and a Relative Strength Index (RSI) of 26 (scores below 30 are generally considered oversold). My theory here is if their next earnings release is decent, the stock might catch a bounce.
Oversold names that aren’t undervalued according to standard metrics, but the stocks are special. Today’s special name is Tesla (TSLA 0.00%↑).

Our maximum possible gains on these trades range from about 200% to 400%, and our maximum possible loss is 100% on all of them.

Details below.

Trade #1: Our Top Name

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