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.