Winning trade for Pltr 21/11 dairy and own learning process $171 profit

Options Trading Analysis

Trade Type: Cash Secured Put

Underlying Asset: PLTR (Palantir Technologies)

Option Type: Put Option

Expiration Date: 2024-11-20

Strike Price: 63.0$Palantir Technologies Inc.(PLTR)$  

$PLTR 20241129 63.0 PUT$ 

Lots: 2

Trade Details:

Sell Order: The trade involved selling 2 lots of PLTR put options with a strike price of 63.0 and an expiration date of 2024-11-20. This was done on 2024-11-20 at a price of 2.87.

Buy Order: A separate order was placed to buy back the same options on 2024-11-21 at a price of 2.00.

Market Context:

The trade was executed during a period of market volatility, likely driven by strong earnings reports from companies like Nvidia.

The market was experiencing a surge in prices, potentially making a cash-secured put strategy attractive.

Potential Outcome:

By selling a cash-secured put, the trader receives premium income (2.87 per lot).

If the price of PLTR remains above the strike price (63.0) at expiration, the option expires worthless, and the trader keeps the premium.

If the price of PLTR falls below the strike price, the trader is obligated to buy the shares at the strike price. However, the trader will have the cash from the premium received to cover the purchase.$Palantir Technologies Inc.(PLTR)$  

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Trading options involves substantial risk, and investors should consult with a financial professional before making any decisions

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