Earn 7% selling pltr put earn in 13 days
**Selling Cash-Secured Put Options: A Strategic Approach**
In my recent trade involving PLTR PUT options, I employed a strategy known as selling cash-secured puts. This method is not only strategic but also offers a way to generate income or potentially purchase stock at a lower price.
**The Initial Trade Setup**
On July 11, 2024, I sold one lot of PLTR PUT options with a strike price of $27.00 for $6.00 per share. Selling cash-secured puts involves agreeing to buy the underlying stock at the strike price if the option is exercised. In this case, I was prepared to purchase PLTR at $27.00, securing the necessary funds in my account.
**Executing the Buy-Back**
Twelve days later, on July 23, 2024, the price of the PUT option had declined significantly. This drop was over 6%, bringing the option price down to $5.60. Recognizing the opportunity, I bought back the same lot of PLTR PUT options at this reduced price$Palantir Technologies Inc.(PLTR)$
**The Outcome**
This trade resulted in a profit of $0.40 per share (calculated as $6.00 - $5.60). By executing this strategy, I effectively generated income within a short period without actually having to purchase the underlying stock.
**Why This Strategy Works**
Selling cash-secured puts can be a prudent strategy for investors looking to generate income or potentially acquire stocks at a favorable price. By selling puts, you receive a premium, which provides immediate income. If the stock price remains above the strike price, the options expire worthless, and you keep the premium. If the stock price falls below the strike price, you have the opportunity to purchase the stock at a discount, aligning with your long-term investment goals.
**Future Plans**
Moving forward, I plan to continue utilizing cash-secured puts as part of my trading strategy. This approach not only provides a steady income stream but also allows for flexibility in managing my portfolio. By staying vigilant and capitalizing on market movements, I aim to enhance my returns while maintaining a disciplined investment approach.
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Let me know if this works for you or if you need any adjustments!@Daily_Discussion @TigerStars @Daily_Discussion @MillionaireTiger
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But for now no way out but hype is over.