Palantir: Rolling Our CSP Position Prior To Earnings…Here’s Why!

Trade Thesis for Palantir Technologies (PLTR):

  • Palantir reports earnings on Thursday (8/12) this week.
  • We have already accrued ~80% of our August cash secured put.
  • Now we can roll the September put option with the same strike price.
  • If you don't have a position in PLTR, the Sept. option is a good opening trade.
  • Listen to the video for trade details!
  • Strike Zone is $15.00 - $18.00


Trade Analysis (Click the video below)

Cash-Secured Put Analysis

Trade (Roll)

Summary

We are buying back (buy to close) the August put option and selling the September put option (sell to open).

Closing Transaction

(Buy To Close)

PLTR Aug 20th $18.00 Put

Price (Premium):  ~$0.08 (sold at $0.36)

Delta:  8

Realized Yield%:  1.4%

MoS %:  17.5%

Opening Transaction

(Sell to Open)

PLTR Sept 17th $18.00 Put

Price (Premium):  ~$0.30

Delta:  13

AMY%:  1.2%

MoS %:  17.5%

AMY % = Average Monthly Yield % / MoS % = Margin-of-Safety %

DISCLAIMER: Parsimony Investment Research and/or it's affiliates may or may not have a position in the stocks and/or options mentioned in this post at the time of publication. The information contained within this post is for informational and educational purposes only and it is not intended as a recommendation of the securities highlighted or any particular investment strategy; nor should it be considered a solicitation to buy or sell any security. The strategies and securities mentioned in this post may not be suitable for all types of investors and the information contained in this report does not constitute advice. Past performance is not a guarantee of future results. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker.

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