PLTR limited upside in short term due to earnings cycle; sell puts.

whenever I like a stock like Palantir, which I think is a great company, I just sell the put option on it.

So I'm going to Palantir. Let's go to PLTR and I want to show you where Palantir is trading right now and how I would choose a strike price. Palantir has been pretty stable and hovering around the same place for the last month , and I knew that.

I mean, when Palantir was at $109 a share, when it was right here, actually right here, even lower. I caught it at 109. I caught it from the bottom. I've been following the stock for a long time so I told my community , "Actually , it's good to sell puts at this point , but we actually want to buy calls."

"I actually took a risk and bought calls, and my community made a lot of money because the stock jumped from 109 to 132. That $20 move, I was going to tell you , and I was going to tell you from memory , but you know , I do n't remember.

So, let's go to my history. Let's actually show you my history. So, let's go to my history because there's that trade that I suggested and I did great on it . Robinhood has added a lot, you have to scroll down a lot.

Let's show you more. This video is about selling puts, but honestly, when a stock goes down a lot , and it's at a 52- week low , and it's a great stock, and it's going to turn around quickly , you might not want to sell puts, but you might want to buy some calls.

Let's see. I bought a 120 call, a 147 call , yeah, it was very cheap to buy calls, and the strike price was great. A 150 buy call. Okay , I actually know The other account that I bought the 110 call from.

Anyway, I have two accounts. But yeah, you can see it there. So, Palantir , okay let's go back to the current example . Palantir is at 175, okay ? What I'm going to do is, let's go back to the 3- month chart.

The stock has gone up a lot. I don't think it's going to come back to where it was , but it could certainly go down to a high of 155. That's the lowest I think it could go in the short term.

Let's look at an expiration date. And again, I'm doing all of this immediately, guys. This is not rocket science. I'm going to show you how easy it is whenever you sell a put option .

So, let's go back to November 20th for example . If I sell a put at 175 , is that better than buying the stock outright? Yes or no? Yes, it's definitely better. Because if you buy the stock, the price is 175.58. Here, I'm getting at least 175.58.

Especially in Palantir , which is very close to the end of its earnings cycle. It really is. I do n't think the stock is going to go up much in the short term. So, for that reason, selling a put is the best strategy for me to use in Palantir right now.

If Palantir falls to 155 , it could happen, although it's not very likely . Well, selling this put option will protect you from that risk.

You can see below . If Palantir goes up, that's great. You're making $1,185 in profit, right ? If the price goes down , at this 165 point, which is your strike price, that's where your loss starts, but you're not actually in the red.

You're just giving up some of your earned profit, right? So, your profit will continue to decrease. Even if Palantir goes to 158, you're still in profit.