Calculating the Return on My $PLTR Cash-Secured Put 💡0.14% in a few days
Recently, I sold a cash-secured put for Palantir (PLTR) at a strike price of $63, expiring in 7 days. I earned a premium of $0.09 per share, or $9 for the contract. While this might seem like a small gain at first glance, understanding the percentage return highlights the effectiveness of this trade.
To calculate the return, we divide the premium earned by the collateral required to secure the put. For a $63 strike price on 100 shares, the total collateral is $6,300. The return is then:

So, this trade earned a 0.14% return in just 7 days.
Why This Trade Was Worth It
Though 0.14% may appear modest, the annualized return is what makes this strategy attractive. If I were to replicate similar trades weekly, the yearly return would be:

That’s a solid return for a relatively low-risk strategy like selling cash-secured puts. It’s comparable to some fixed-income investments, with the added benefit of potentially acquiring shares of a stock I believe in at a discount if assigned.
The Power of Small Gains
This trade exemplifies how compounding small, consistent gains can significantly enhance portfolio performance over time. Selling cash-secured puts allows me to generate income on idle cash while staying prepared to buy shares at my desired price. Even small premiums like this one contribute to long-term wealth growth when executed consistently and disciplined.
By focusing on incremental progress, I maintain a low-risk approach while steadily growing my portfolio—a strategy that aligns perfectly with my long-term financial goals.$PLTR 20241220 63.0 PUT$ @MillionaireTiger @TigerStars @TigerTradingNotes
| Side | Price | Realized P&L |
|---|---|---|
| Buy Close | 0.00 | +100.00% Closed |
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