@Optionspuppy：I missed the greatest run $6 to $13 $Palantir Technologies Inc.(PLTR)$ sell put At $11 for pltr Then to get 0.40 per month or 4% so in the event get assigned just continue to sell call at $11 or $12 And get 4% every month Alrighty then, let's dive deeper into the fascinating world of stock options and the exciting wheel strategy! This time, we're going to take a closer look at $Palantir Technologies Inc. (PLTR), a stock that has had quite a run from $6 to $13. Buckle up, my friend, because we're about to embark on a thrilling roller coaster ride of bullish strategies! First things first, let's talk about selling put options. Selling a put option means you're giving someone else the right to sell you the stock at a predetermined price (in this case, $11) within a specific timeframe. But why would you want to do that? Well, by selling the put, you're actually getting paid a premium (in this case, $0.40 per month or 4%) for taking on the obligation to potentially buy the stock. Now, let's say you sell a put option for PLTR at $11. If the stock price remains above $11 by the option expiration date, congratulations! You get to keep the premium you received for selling the put, and you don't have to buy the stock. It's like enjoying a sushi feast without having to pay for it! But what happens if the stock price falls below $11 and you get assigned? Don't fret, my friend! The wheel strategy comes to the rescue. If you get assigned the stock, you become the proud owner of PLTR at $11 per share. But fear not, because the wheel strategy allows you to keep earning income even in this scenario. So, what's the next step? Well, now that you own the stock at $11, you can continue to sell call options. Selling a call option means you're giving someone else the right to buy the stock from you at a predetermined price (let's say $11 or $12) within a specific timeframe. And guess what? You get paid another premium for doing so! By selling call options, you're essentially renting out your stock to someone who believes its price will rise above the predetermined price (strike price) by the option expiration date. If the stock stays below the strike price, the call option expires worthless, and you get to keep the premium. It's like being a landlord who collects rent without having to worry about fixing leaky faucets! But what if the stock price goes above the strike price and the call option gets exercised? Well, in that case, you sell your shares at the predetermined price. Let's say you sell a call option at $11 and the stock price rises above $11. You sell your shares, make a profit, and then you can start the process all over again by selling another put option. And here's the beauty of the wheel strategy—it allows you to continue earning income as the stock fluctuates up and down. You keep selling put options when the stock is below the strike price, and if assigned, you sell call options when the stock is above the strike price. It's like riding a financial roller coaster and collecting money at each twist and turn! But, of course, with all investment strategies, there are risks to consider. If the stock price takes a nosedive, you could end up owning the stock at a higher cost than its current market value. Additionally, if the stock price rises significantly and exceeds the strike price, you might miss out on potential gains beyond that point. So, it's important to carefully evaluate the risks and rewards of the wheel strategy before diving in. Remember, investing in options and implementing strategies like the wheel requires knowledge, careful analysis, and keeping a close eye on market trends. It's always a good idea to consult with a financial advisor or do thorough research before engaging in such strategies. Now, my friend, armed with your newfound knowledge of the wheel strategy and the exciting potential it offers, you can embark on your options trading adventure with $Palantir Technologies Inc. (PLTR) and make the most of its bullish run! The key to successfully executing the wheel strategy lies in understanding the dynamics of the stock and the options market. Keep a close eye on PLTR's price movements, as well as any news or events that may impact its value. This will help you make informed decisions about when to sell put options and at what strike price. When selecting the strike price for your put options, consider a level that you would be comfortable owning the stock at in case of assignment. In this case, you chose $11 as your strike price. By selecting a strike price that is slightly below the current market price, you increase the likelihood of earning the premium without being assigned the stock. Once you've sold a put option and collected the premium, it's time to wait and see what happens. If the stock price remains above the strike price by the option expiration date, congratulations! You keep the premium as profit, and you're free to repeat the process by selling another put option. It's like enjoying a sushi feast without spending a penny! However, if the stock price falls below the strike price and you get assigned, don't panic! Remember, this is where the wheel strategy truly shines. Now that you own the stock at $11, you can start selling call options to generate additional income. When selling call options, you have the flexibility to choose a strike price that suits your investment goals. You mentioned considering $11 or $12 as potential strike prices. Assess the market conditions, the stock's recent performance, and your expectations for its future movement to make an informed decision. Selling call options allows you to benefit from the stock's potential upward movement while earning premium income. If the stock price stays below the strike price, the call options you sold will expire worthless, and you keep the premium as profit. It's like being the landlord of your PLTR shares and collecting rent without any hassle! On the other hand, if the stock price rises above the strike price and the call options you sold get exercised, you will sell your shares at the predetermined price. This allows you to realize a profit on the stock, and you can once again sell put options or consider buying back the stock at a lower price if you believe it's a good opportunity. By repeating this cycle of selling put options and call options, you can continue to earn income regardless of whether the stock is trending up, down, or sideways. It's like riding a thrilling financial roller coaster that keeps rewarding you at every twist and turn! However, it's important to remember that options trading involves risks. Market fluctuations, unexpected events, and other factors can impact the performance of both the stock and the options. It's crucial to conduct thorough research, monitor market trends, and be prepared for potential scenarios to make informed decisions. Consider setting a clear risk management strategy, including determining how much capital you're willing to allocate to options trading and setting stop-loss orders to limit potential losses. Remember, it's always wise to consult with a financial advisor or engage in extensive self-education before diving into options trading. So, my adventurous friend, armed with the wheel strategy and a solid understanding of PLTR's potential, take charge of your options trading journey. Embrace the exciting fluctuations of the stock market, but always tread cautiously and remember to enjoy the ride! Disclaimer: The information provided here is for educational purposes only and does not constitute financial advice. Trading options involves risks, and you should carefully consider your financial situation and consult with professionals before making any investment decisions. 🐯 🐯🐯🐯🐯🐯 Dear tiger readers Please help to share post also clicking the repost button and follow me as I published my post on my ideas and trading experiences and sometimes including my current dividend positions and winning sell call and put trades . 🦁🦁🦁🦁🦁Do follow me share my posts regularly So more people can learn about my trading methods and winning trades on selling covered calls and puts options I share my options trade below usually I sell at a higher price then buy back at a lower price for a profit I 🌈🌈🌈🌈🌈🌈🌈🌈 As always do your on due diligence and tradings have risks Do feature me @TigerPM @MillionaireTiger @RT126 @Daily_Discussion @TigerStars so more people learn sell cash covered put on good stocks and earn 1% or more per month Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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