Trade Review on August 1st: Buy Sofi sell call on Sofi and sell put on pltr Navigating the Market Downturn
### Trade Review on August 1st: Navigating the Market Downturn
On August 1st, I executed several trades involving SOFI and PLTR options, as well as a stock purchase for SOFI. Here's a detailed breakdown of my trades and the reasoning behind them: $SoFi Technologies Inc.(SOFI)$ $Palantir Technologies Inc.(PLTR)$
### Trades Executed:
1. **SOFI PUT (Buy) - $5.5 Strike, Expiry: 2024-08-02**
- **Price:** 0.01
- **Reasoning:** I bought a put option at a low price, which served as a hedge against a potential downturn, despite my overall bullish outlook on the stock. The low cost indicated minimal risk and a low probability of SOFI dropping significantly.
2. **PLTR CALL (Buy) - $21 Strike, Expiry: 2024-08-16**
- **Price:** 6.55
- **Reasoning:** Purchasing a call option reflected my bullish stance on PLTR, anticipating a possible rise in its price before the expiration date.
3. **PLTR CALL (Sell) - $21 Strike, Expiry: 2024-08-30**
- **Price:** 6.64
- **Reasoning:** I sold a call option, possibly as a covered call strategy or to collect premium, believing PLTR wouldn't surpass $21 by the expiry date.
4. **SOFI CALL (Sell) - $7 Strike, Expiry: 2024-08-09**
- **Price:** 0.68
- **Reasoning:** Selling a call option was a move to collect premium, potentially as a covered call if I owned the underlying stock.
5. **SOFI Stock (Buy) - 100 Shares**
- **Price:** 7.62
- **Reasoning:** I bought SOFI shares, reflecting a bullish view, expecting the stock to rise above $7.62.
6. **SOFI PUT (Sell) - $6.5 Strike, Expiry: 2024-08-09**
- **Price:** 0.02
- **Reasoning:** Selling a put option was a bullish strategy, as I believed the stock wouldn't drop below $6.5. If exercised, I was willing to buy more shares at that price.
7. **SOFI PUT (Sell) - $6.5 Strike, Expiry: 2024-08-30**
- **Price:** 0.08
- **Reasoning:** Similar to the previous put sale, this was an effort to collect premium while being willing to buy more shares if the price fell.
8. **PLTR PUT (Buy) - $20 Strike, Expiry: 2024-08-30**
- **Price:** 0.18
- **Reasoning:** I bought a put option as a hedge against potential downside risk in PLTR.
9. **PLTR PUT (Sell) - $20 Strike, Expiry: 2024-08-30**
- **Price:** 0.19
- **Reasoning:** Selling a put option at a similar strike as the bought put might have been part of a spread strategy, possibly a credit spread, to profit from the premium difference while limiting risk.
### Overall Sentiment:
My trades on August 1st reflect a mix of bullish and bearish positions. The purchase of SOFI shares and a PLTR call option indicates bullish expectations. However, selling SOFI and PLTR calls was a strategy to generate income, possibly through covered calls. The combination of buying and selling puts showed a cautious approach, potentially hedging against downside risks.
Despite the market downturn, my strategy aimed to profit from premium collection while hedging against further declines. It was a careful balancing act between optimism and risk management, ensuring I stayed protected in a volatile market.
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