4/11/2021 Plan:
This week we look at a fairly recent IPO, Palantir (Ticker: PLTR)
4/11/2021 Plan (continued):
- PLTR- Sell Apr 30 21/19 put spread for 0.23
- DIS – Sell Apr 23 180 put for 1.19
- Prices are as of market close 4/9/2021, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
4/11/2021 Commentary:
Palantir hasn’t spent any meaningful time below the 21 level since it ran up at the end of November. This put spread assumes it will continue that trend for the next few weeks. In addition, despite this being a very volatile name, the historical volatilty has really come off.
With the stock market at all time highs, there aren’t a lot of puts on my list currently. This Disney put is Only for those investors that would like to own shares of Disney for a long time. As an alternative trade one could spread this with the 177.5 put for a net 0.38 credit
Reach out with any questions on this or any other trade!
4/12/2021 Entry:
Sold PLTR Apr 30 20/18 put spreads for 0.24. DIS Apr 23 put spreads are available for 0.40 or the 177.5/175 for 0.26. Note the PLTR are at lower strikes for about the same premium. Feel free to adjust for your personal risk reward preference.
4/18/2021 Update:
The DIS put spreads are only worth 0.12 at the mid-point – we’ve captured about half the premium. They expire this week, so close as soon as you’d like. Disney made the cover of this week’s Barron’s and may receive a pop based on the coverage. Our (currently) winning trade was not covered in the article…
Our PLTR spreads are profitable, now worth 0.17. I plan to hold mine through this week to try and gain additional profit. They expire next week (April 30).
4/25/2021 Update/Partial Close:
The DIS put spreads expired worthless, allowing us to capture $26/spread. A great win for our members and an 11.6% return in just 11 days.
The PLTR put spreads expire this week and are worth only 0.02. Should probably close those out and book the win. You can also just close the short options if you want to hold on to some cheap lottery tickets.
5/2/2021 Close:
The PLTR put spreads expired worthless if you didn’t follow the guidance to close. As alerted in the txt message, I closed the shorts on Monday for 0.03, bringing our profit to $21 per put spread. That’s a 12% return on our risk in 2 weeks and we still had some “lottery tickets” if PLTR crashed during the week.
Reach out with any questions on this or any other trade!
