How I Trade Little John to Lock Profits AND Ride Winners

I’m coming to the end of my first quarter of trading with the Little John technology built last year by my Option Pit team.

Little John allows me to organize and track Robinhood trends, and my account is up over 30% in three months …

Not too bad for 90 day’s work! 

Friday was a fun day because a nice feature of Little John is that when it wins, it wins BIG. 

We’ve seen 294% on NIO, 287% on FCEL, 114% on GM … and on it goes.

On Friday, it was Palantir’s turn (again).

Thursday afternoon I got a trigger from Little John to go long PLTR calls.

Using our technology, I was able to determine that the Jan. 29 expiry 26.5 calls were the cheapest options to buy to take advantage of a strong move.

Friday brought that action.

Take a look at what PLTR did on the day:

It went straight up.

Trading Little John
I’ll show you how I played it …

But first, you should know that … all Little John members received live text and email alerts with these trades so they could execute and profit, too.

OK, here we go …

Thursday afternoon I bought four of the PLTR Jan. 29 26.5 calls for 1.40, a total outlay of $560.

On Friday, PLTR started to move.

I made my first sale of calls at 2.30, selling ½ my position.

Bringing in 460 bucks on ½ the trade, made the rest of the trade cost only $100.

A few hours later I sold the other two calls at 3.80.

If I had stopped there I would have netted a 117% in a day …

But I didn’t!

I used the final sale of one of my calls at 3.80 to finance a purchase of two of the 30 calls for 1.77.

PLTR was like a runaway freight train.

A few hours later I sold one of the my PLTR 30 calls at 3.00

I now had $516 in my pocket and was still long a call.

Again PLTR would not stop. I sold one more call at 3.60 and again used the gains to finance a call purchase.

I’m now long two of the PLTR Jan29 35 calls for 1.55.

Here are the trades:

Add It Up
Let’s do the math here folks …

I made $660 on the first trade and used $344 to buy two calls. 

I made $316 on the second trade and used $310 to finance the 35 calls.

All said and done, I am long two of the PLTR 35 calls for a net CREDIT (I got paid for selling profitable options) of $656

That is a guaranteed profit of 117% PLUS upside exposure on PLTR.

A risk chart looks like this:

Notice if PLTR goes to zero I still cannot lose.

Here’s something else to note: If I had sat on my 26.5 calls, I would have made even more on Friday … but that would have been poor risk management.

While I would have loved to sit on the calls, if PLTR rallied $3 and then dropped back to only up a dollar or so, my profit would have evaporated.

A perfect example happened in AMD on Friday, when it opened up $4 and ended the day up just 1.26.

By closing and using a small portion of my dollars, I was able to stay long AND pocket cash.

And that’s always a great way to cruise into the weekend.

Your Only Option,

Mark Sebastian

Hey Traders,

I’m coming to the end of my first quarter of trading with the Little John technology built last year by my Option Pit team.

Little John allows me to organize and track Robinhood trends, and my account is up over 30% in three months …

Not too bad for 90 day’s work! 

Friday was a fun day because a nice feature of Little John is that when it wins, it wins BIG. 

We’ve seen 294% on NIO, 287% on FCEL, 114% on GM … and on it goes.

On Friday, it was Palantir’s turn (again).

Thursday afternoon I got a trigger from Little John to go long PLTR calls.

Using our technology, I was able to determine that the Jan. 29 expiry 26.5 calls were the cheapest options to buy to take advantage of a strong move.

Friday brought that action.

Take a look at what PLTR did on the day:

It went straight up.

Trading Little John
I’ll show you how I played it …

But first, you should know that … all Little John members received live text and email alerts with these trades so they could execute and profit, too.

OK, here we go …

Thursday afternoon I bought four of the PLTR Jan. 29 26.5 calls for 1.40, a total outlay of $560.

On Friday, PLTR started to move.

I made my first sale of calls at 2.30, selling ½ my position.

Bringing in 460 bucks on ½ the trade, made the rest of the trade cost only $100.

A few hours later I sold the other two calls at 3.80.

If I had stopped there I would have netted a 117% in a day …

But I didn’t!

I used the final sale of one of my calls at 3.80 to finance a purchase of two of the 30 calls for 1.77.

PLTR was like a runaway freight train.

A few hours later I sold one of the my PLTR 30 calls at 3.00

I now had $516 in my pocket and was still long a call.

Again PLTR would not stop. I sold one more call at 3.60 and again used the gains to finance a call purchase.

I’m now long two of the PLTR Jan29 35 calls for 1.55.

Here are the trades:

Add It Up
Let’s do the math here folks …

I made $660 on the first trade and used $344 to buy two calls. 

I made $316 on the second trade and used $310 to finance the 35 calls.

All said and done, I am long two of the PLTR 35 calls for a net CREDIT (I got paid for selling profitable options) of $656

That is a guaranteed profit of 117% PLUS upside exposure on PLTR.

A risk chart looks like this:

Notice if PLTR goes to zero I still cannot lose.

Here’s something else to note: If I had sat on my 26.5 calls, I would have made even more on Friday … but that would have been poor risk management.

While I would have loved to sit on the calls, if PLTR rallied $3 and then dropped back to only up a dollar or so, my profit would have evaporated.

A perfect example happened in AMD on Friday, when it opened up $4 and ended the day up just 1.26.

By closing and using a small portion of my dollars, I was able to stay long AND pocket cash.

And that’s always a great way to cruise into the weekend.

Your Only Option,

Mark Sebastian


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