I often find myself contemplating missed opportunities, particularly with Palantir's recent surges. Despite my regret about not acquiring more shares before the upticks, I've been actively engaged in selling put options. The strategy involves positioning myself to own the shares if the puts are exercised, yet all of my recent put options expired without value due to the relentless upward trajectory of the stock price. While the premiums from these options provided some returns, they pale in comparison to the potential profits I could have reaped given the stock's recent highs.
Despite maintaining a bullish outlook on Palantir, I'm cautious about outright ownership due to the stock's inherent price volatility. Recognizing the substantial fluctuations, coupled with the fact that the stock boasts a consistently high implied volatility (IV) of over 50% on average and exceeding 100% during earnings periods, I've hesitated to simply buy the underlying shares.
Looking ahead, my strategy is evolving. I've decided to focus on selling put options closer to their strike prices. This approach allows me to potentially acquire the shares at a more favorable price, while also enabling me to collect a more substantial premium if the options are exercised. It's a nuanced shift in my approach, acknowledging the market dynamics and aiming for a balance between risk and reward in my Palantir investment strategy.
@CaptainTiger @Daily_Discussion @Tiger_SG @TigerEvents @TigerStars
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