To The Moon

📉 Premiums From Fear, Profits From Probability

In the options market, fear is often overpriced — and I intend to profit from it. On July 14, I sold a cash-secured put option on Palantir Technologies Inc. (PLTR) with a strike price of $105, expiring on July 18, 2025. I collected a premium of $0.11 per share, or $11 per contract, for this short-dated trade.

At the time of execution, PLTR was trading comfortably at $132.12, giving me nearly $27 in buffer between the market price and the strike. The option delta was a mere 0.012, translating to a roughly 1.2% chance of assignment — statistically, I’m walking away unassigned more than 98% of the time.

⸻

🛡️ The Logic Behind the Strike: Protection Over Greed

I chose the $105 strike — not because I expect PLTR to fall, but because I understand risk-adjusted reward. This strike gives me a 21% downside cushion. In other words, PLTR would need to crash more than $27 in just 4 days for me to be forced to buy it at $105 — a scenario I consider highly improbable, unless a black swan event occurs.

Even if PLTR somehow dropped and I got assigned, I’d be buying a solid growth stock at a significant discount, aligning with my long-term belief in Palantir’s AI-powered future.

⸻

💰 Premium Stacking & Compounding

Although the $11 premium may seem small, the real power lies in repetition and compounding. Selling weekly puts with similar probability of success allows me to stack small premiums into a reliable monthly income stream. Even collecting $11 a week adds up to over $570 a year per contract, assuming no assignment.

If I repeat this strategy with multiple low-delta puts, I effectively become the house in a casino — taking calculated bets on probabilities skewed in my favor. This is smart premium harvesting, not gambling.

⸻

🧠 Why Cash-Secured, Not Naked

I always sell cash-secured puts. That means I have the full $10,500 in buying power ready, should the stock drop and assignment occur. This isn’t a YOLO trade — it’s responsible investing. I make sure every put I sell is backed by the cash needed to fulfil the contract. This maintains capital discipline and allows me to sleep well at night, regardless of market swings.

⸻

🏆 Final Thoughts: Collecting Rent From Volatility

Selling puts is like collecting rent from volatility. When others are uncertain, I provide certainty — for a price. In this case, $11 for 4 days of potential commitment on a stock I wouldn’t mind owning lower. My strategy is clear: buy quality companies at a discount, or get paid for waiting.

This PLTR $105 put is just one piece of my overall premium collection portfolio, where I continue to leverage low-delta, high-probability trades to build consistent cash flow — all while staying fully in control of my capital.

@Wrtd 

@MillionaireTiger @Daily_Discussion @TigerStars