To The Moon

Overview

On July 11, 2024, I sold two contracts of Palantir Technologies (PLTR) $Palantir Technologies Inc.(PLTR)$  put options with a maturity date of August 9, 2024, at a strike price of $23, collecting an option premium of $50 per contract. This strategy was based on my analysis of Palantir's recent performance and future prospects.

Palantir's Performance and Prospects

Palantir's stock has appreciated by 80% over the past year, driven by the company's success in delivering AI-enhanced software that provides substantial value to its customers. The company's shift towards profitability, coupled with its innovative AI solutions, has positioned it strongly in the market.

Palantir's Artificial Intelligence Platform (AIP) has been in high demand, reflecting the company's ability to meet the growing needs of businesses looking to leverage AI. This strong demand and Palantir's strategic moves to support its customers suggest a bright future for the company, which is also mirrored in its stock performance.

Option Strategy

By selling the put options, I essentially bet on Palantir's stock staying above the strike price of $23 by the maturity date. Collecting an option premium of $50 per contract provided immediate income, totaling $100 for the two contracts.

Rationale and Potential Outcomes

Bullish Outlook: Given Palantir's strong performance and promising outlook, I believed the stock would remain above $23. This would render the put options worthless at expiration, allowing me to keep the entire premium as profit.

Risk Management: If the stock were to fall below $23, I would be obligated to buy Palantir shares at this price. However, given the company's strong fundamentals and growth prospects, acquiring shares at $23 would still be a favorable long-term investment.

Conclusion

Selling put options on Palantir was a strategic move based on a positive outlook for the company. The collected premium provided immediate income, while the strike price of $23 offered a buffer against potential short-term volatility. Given Palantir's trajectory and market position, this strategy was aligned with my investment thesis and risk tolerance.

This option strategy not only allowed me to generate additional income but also positioned me to potentially acquire Palantir shares at a favorable price, reinforcing my confidence in the company's future growth.

$PLTR 20240809 23.0 PUT$