To The Moon

💡 Why I Sold a $105 PLTR Cash-Secured Put Instead of Buying Near the High

🚫 Avoiding FOMO at the Top

As Palantir (PLTR) climbed toward its all-time high of $125, many investors rushed to buy in, driven by the fear of missing out (FOMO). But I’ve learned from past experience that buying at euphoric highs often leads to regret when momentum fades. Rather than chasing the price like a gambler at the table, I took a disciplined approach. I refused to pay a premium at the peak, choosing instead to position myself for a better entry or a premium income—both win-win scenarios. 🎯

$PLTR 20251017 105.0 PUT$ 

💰 Selling the $105 Put for Income

I sold a cash-secured put at a strike price of $105, expiring in December, for a juicy premium of $10.49 per share. That’s a total credit of $1,049 per contract—real cash in my pocket. This strategy is ideal in high-volatility situations like PLTR, where premiums are elevated. While others are buying the stock outright and praying it continues upward, I’m collecting income up front, with a lower-risk entry point. 📉📈

🛡️ Margin of Safety Built In

By selling a put at $105 and receiving $10.49 in premium, my breakeven is effectively $94.51. That gives me a 24.39% discount from the recent high of $125. I’m happy to own Palantir for the long term, especially at a lower cost basis. If the stock pulls back, I’ll get assigned at a price I’m comfortable with. If it doesn’t, I keep the premium and walk away. Either way, I win. 🏆

⏳ Time Is on My Side

This trade runs until December, giving me over three months of time decay working in my favor. Theta, or time decay, accelerates as expiration nears—meaning the value of the put I sold will likely drop over time, letting me potentially buy it back at a cheaper price. Selling options with a clear timeframe allows me to control risk and set expectations. $Palantir Technologies Inc.(PLTR)$  

🔍 Taking Advantage of Market Psychology

Market sentiment can be irrational. People panic when prices fall and become greedy when prices rise. By using options, I step aside from the emotional crowd and take a more logical route. Selling puts during bullish euphoria allows me to sell high implied volatility and collect richer premiums. I’m not betting on a crash—I’m simply positioning myself to profit regardless of whether PLTR goes up, down, or sideways. 😌

💼 A Smart Strategy for Long-Term Investors

I believe in Palantir’s AI-driven future, but I don’t believe in overpaying. This strategy reflects my confidence in the company while maintaining discipline. Selling cash-secured puts like this is how experienced investors buy quality stocks at fair prices or generate high income while waiting. It’s not flashy, but it’s effective. And over time, strategies like this compound into real wealth. 🧠💼📈

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