To The Moon

**Understanding Cash Secured Put Options** 📉💰

Cash secured put options are a type of options contract where the seller (also known as the writer) is obligated to buy a specific underlying asset at a predetermined price (strike price) if the option is exercised by the buyer before the expiration date. The seller must have enough cash in their account to purchase the underlying asset if assigned. This strategy is typically used by investors who are bullish on the underlying asset and want to generate income while potentially acquiring the asset at a discount.

**Scenario with PLTR Put Option** 🚀💼

In your case, on March 27, 2024, with Palantir Technologies Inc. (PLTR) trading at a spot price of $24.92, you decided to open one lot of PLTR put options expiring on April 26, 2024, with a strike price of $24.00. By selling this put option, you're essentially agreeing to buy PLTR shares at $24.00 if the option is exercised by the buyer before expiration.

**Premium and Position Analysis** 💰📊

You received a premium of $0.77 per share for this put option, which translates to $77 for one lot (since each lot typically consists of 100 shares). With the stock trading at $24.92, the option is 'out of the money' as the current stock price is higher than the strike price. Therefore, if the option is not exercised before expiration, you get to keep the premium as profit.

**Potential Profit and Capital Requirement** 🤑💼

The potential profit for one contract would be the premium received, which is $77. The capital needed to secure this put option is the strike price multiplied by the number of shares per contract, which is $24.00 * 100 = $2400. However, since you have already received a premium of $77, the effective capital required is reduced to $2323.

**Interest Calculation** 📈🔢

If the price of PLTR stays above $24.00 until expiration, the put option will expire worthless, and you will keep the entire premium as profit. There would be no additional interest or cost incurred in this scenario.