To The Moon

### Navigating Palantir PUT Options: A Strategic Play$Palantir Technologies Inc.(PLTR)$  

$PLTR 20240927 30.0 PUT$ 

In the world of options trading, there are moments when high volatility can work in your favor, especially when you know the underlying stock like the back of your hand. Take, for instance, my recent decision to sell a near at-the-money (ATM) Palantir (PLTR) PUT option, just shy of an upcoming earnings announcement. This move might seem like I'm stepping onto a battlefield with a high-risk steamroller strategy, but with the right perspective, it’s a calculated play for maximum reward.

**Why Near ATM and Short DTE?**

Let's talk about the timing. By choosing a short-dated expiration (DTE) and a near ATM strike, I'm positioning myself to capitalize on the impending earnings volatility. High volatility equals high premium, and in this case, the juicy premium received is far from mere pennies. This is about recognizing an opportunity to collect a significant reward, all while maintaining an exit strategy should the market move against me.

**High Risk or Calculated Gamble?**

Sure, some might see this as a risky move, like picking up pennies in front of a steamroller. But let's get one thing straight—this is not Walmart (WMT) we're talking about, where a low beta of 0.5 allows for a more relaxed approach. Here, with Palantir, the stakes are higher, but so is the potential upside. And with a delta of 0.436, there's a decent probability that this option will be in the money (ITM) as the expiration approaches. But let's not forget the theta, which at 0.04, works in my favor by accelerating time decay as the expiration date draws near.

**The Assignment: To Baghold or Not?**

If earnings don't go as expected and the stock drops, I have an escape route: rolling the position to avoid assignment, thus buying myself time until the market stabilizes. Alternatively, if I end up bagholding, it's not the end of the world. I wouldn't have entered this trade if I wasn't comfortable with the idea of owning Palantir shares at this price point. After all, in the tech-driven world we live in, Palantir’s potential for growth remains compelling.

**Comparing Strategies: Why Not higher beta

This approach wouldn’t work as effectively with more expensive or higher-beta stocks with higher prices and more fluctuations 

In conclusion, while some may see the Palantir PUT as a high-risk endeavor, it's a calculated move, leveraging high volatility and short DTE to secure the best possible premium. It's not about picking up pennies in front of a steamroller—it's about seizing an opportunity with a strategy designed to maximize returns while keeping risk within acceptable bounds. And with the escape routes I've planned, I’m ready to navigate whatever the market throws my way.

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