🧠 Why I Sell Deep Out-of-the-Money Puts on Palantir and Buy More Shares When the Price Drops 💵📉


📉 Palantir’s Dip from $158 to $150 – A Buying Opportunity?

Recently, Palantir Technologies (PLTR) experienced a healthy pullback from its recent high of $158, sliding down to around $150. For long-term investors like myself who believe in PLTR’s role in the AI and government tech ecosystem, such a dip isn’t a threat — it’s a gift-wrapped opportunity. Rather than panicking, I see this as the market handing me discounted shares of a company with strong future potential.

💰 Selling Deep Out-of-the-Money Puts for Extra Cash Flow

On July 22, I executed a cash-secured put (CSP) on Palantir with a strike price of $80, set to expire on November 21, 2025, for a premium of $1.25 per share (or $125 total per contract). At first glance, the $80 strike may seem far-fetched with the current price at $150 — but that’s exactly the point.

This is what I call a “money put”: a put so deep out of the money that the chance of assignment is minimal, yet it still pays a decent premium. It’s high-probability income, and in this case, that income fuels my next strategy.

🛍️ Using Premiums to Dollar-Cost Average into Fractional Shares

Instead of letting that $125 sit idle, I reinvested it into fractional shares of PLTR at lower prices during the dip. On the same day, I bought small slices of PLTR at:

• $149.31

• $149.10

• $147.72

Even if the stock goes sideways or dips further, these small consistent buys average down my cost basis and increase my long-term holdings.

🔁 The “Recycle and Compound” Strategy ♻️

This dual move — selling low-risk puts and using the premium to buy shares — allows me to:

1. Earn income passively,

2. Build equity in a stock I believe in,

3. Stay active in the market without overexposing capital.

It’s a smart way to compound my position while controlling downside risk.

Final Thoughts 🎯

In volatile tech names like Palantir, you don’t need to time the bottom — you need a system. By selling cash-secured puts far below the market and recycling that cash into fractional shares, I’m turning fear into opportunity. When PLTR eventually recovers beyond $158 again, I’ll be holding more shares… bought with money the market handed to me$PLTR 20251121 80.0 PUT$ 

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • EllisBird
    ·07-23
    Your strategy is impressive
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