The last month has been a total mess for the market and most stocks. And while I wouldn’t call the market decline in April a full-blown crash, that has been the case for many stocks. And while such a steep market fall is not great, on a positive note, amidst the rubble of a market implosion, it’s not hard to find the best-looking stocks in a bad market.
The holy grail for my trading system is finding stocks that are outperforming the market and their peers and that also attract bullish option activity. And while I have not bought any of the stocks that I am going to highlight below, I am intrigued in doing so IF the market can get back in gear.
Let’s dive in …
[text_ad]
Uber (UBER) has held up spectacularly despite the market meltdown as the stock is just a couple dollars below its 2025 high. That kind of outperformance stands out in a BIG way. And with this stock outperformance has been steady call buying, including these trades from last week:
Friday - Buyer of 6,000 Uber (UBER) June 80/100 Bull Call Spread and Sale of June 60 Puts – Stock at 75 (bull risk/reversal)
Thursday - Buyer of 3,000 Uber (UBER) November 95 Calls for $3.55 – Stock at 75
Wednesday - Buyer of 4,000 Uber (UBER) June 82.5 Calls for $2.40 – Stock at 74
These three trades above are a small sample of the very strong option activity in UBER, and because of this option action and stock strength, UBER is the top of my watchlist for new buys IF the market can get in gear.
General Electric (GE) doesn’t look as good as UBER, but it also hasn’t died like many of its industrial peers. And following an earnings beat on Tuesday and a subsequent big move higher in the stock, GE is back within striking distance (kind of) of its 2025 high. And also of interest to me, on Wednesday a trader bought these GE calls looking for continued strength:
Wednesday - Buyer of 3,000 General Electric (GE) June 200 Calls for $7.60 – Stock at 194
GE is a classic bull market stock, and much like UBER above, if the bulls take back control, I could see GE working well.
And finally, while the option activity has been very mixed in Palantir (PLTR), the stock strength has stood out like a sore thumb of late. And if the bull market kicks back into gear, I could see former glamour leader PLTR regain its leadership status amongst growth stocks.
Stepping back to the market, I’m encouraged by the market’s action on Tuesday and Wednesday, and hopefully, this most recent rally is the start of a sustained move higher. And if that is the case, it won’t be hard to find the next emerging stock leaders.
[author_ad]
