To The Moon

In today’s uncertain market environment, I’ve adopted a reliable strategy to earn consistent income while maintaining full control of my risk — selling cash-secured puts (CSPs) on high-conviction stocks. With a total capital base of $45,000 USD, I actively allocate $15,000 USD (one-third of my portfolio) to execute these strategic trades on selected equities, such as Palantir Technologies Inc. (PLTR).

⸻

📊 What Is a Cash-Secured Put?

A cash-secured put is an options trading strategy where I sell a put contract while keeping enough cash on hand to buy the stock if assigned. By doing so, I receive an upfront premium — a sort of “income” for taking on the obligation to buy the stock at a pre-agreed price (the strike price) before the option expires.

For every put contract sold, I must have the full amount of cash available to purchase 100 shares at the strike price. It’s a conservative strategy suitable for those who are happy to own the stock at a lower price or simply earn the premium if the stock stays above the strike.

$PLTR 20250808 150.0 PUT$ 

⸻

🔄 My Real Trade: PLTR $150 Strike Put

Here’s how I applied this in real time:

• Stock: Palantir Technologies (PLTR)

• Expiration: August 8, 2025

• Strike Price: $150

• Capital Allocated: $15,000

• Premium Collected: $11.39 per share → $1,139 total

• Buyback Order Filled: $11.09 → $1,109 total

• Profit Locked: $30 (about 3% of the premium) in under 2 hours

This trade was executed overnight between July 16 and 17, and by the early hours of July 17, I had already exited the trade with a 3% return on the option premium, while freeing up my capital to be recycled into the next opportunity.

⸻

💡 Why I Chose to Close Early

Instead of holding the put to expiry for the full premium, I submitted a limit order to buy back the same put at a lower price — $11.09 — immediately after selling it at $11.39. This technique is known as “scalping the premium” or realized income capture. I locked in quick profits while eliminating exposure to overnight and market risks. This is particularly effective when implied volatility drops or the stock remains stable.

⸻

🏦 Where Does the Remaining Cash Go?

Even when I sell CSPs, my collateral is not just sitting idle. I park the $15,000 collateral in money market funds, which continue to earn interest (often between 4.5%–5.5% annually). That means I’m earning interest on my idle capital while using it as a cushion for my options trading. This dual-purpose use of cash makes my strategy both yield-enhancing and capital efficient.

⸻

📈 Risk Management: Why CSPs Fit My Portfolio

Selling CSPs aligns with my capital management philosophy:

• No margin is used – trades are 100% collateralized

• Drawdowns are limited to the downside of being assigned a stock I already want to own at a discount

• Income is generated instantly through premiums, often higher than dividend yields

• Flexibility to roll, close early, or adjust based on market sentiment

For example, if PLTR drops near $150 and I get assigned, I’m happy to buy and either hold long-term or turn the position into a covered call, continuing to generate income while reducing my cost basis.

$PLTR 20250808 150.0 PUT$ 

⸻

🔄 Summary: Small Wins, Big Impact Over Time

This trade may seem small — a $30 gain on $15,000 — but when repeated weekly or even biweekly, the compounding effect becomes powerful. A simple 3% win on each cycle, done 20 times a year, equates to 60% returns annually on the premium base, all while keeping the core capital safe and liquid.

My strategy is not about home runs. It’s about controlled risk, consistent income, and strategic deployment of cash. That’s how I manage my $45,000 capital — and sleep well at night. 😴📈

@Wrtd 

@MillionaireTiger @TigerEvents @Daily_Discussion @MillionaireTiger @TigerEvents @Daily_Discussion