Got a $600 plus of losses $Palantir Technologies Inc.(PLTR)$  

Palantir’s Reversal: Why My Sell Put at 93.00 Might Be a Blessing

A Reversal in Sight?

Palantir Technologies (PLTR) has recently experienced a sharp pullback from its highs near 125, creating concerns for some investors. However, as the dust settles, technical indicators suggest that a reversal may be underway. The stock is now testing a support zone near the lower Bollinger Band, while the KDJ indicator is deep in oversold territory. Historically, these signals have preceded rebounds, making this an opportune moment to analyze the potential benefits of my sell put position at 93.00.

The Power of Selling Puts at 93.00

Selling a put at 93.00 was a calculated decision, not just a random bet. If PLTR stays above 93.00 at expiration, I keep the premium I collected when opening the contract, essentially earning income without needing to own the stock. However, if the stock does dip below 93.00 and I get assigned, I acquire PLTR shares at a discounted price compared to its recent highs. Given that the stock has already corrected significantly, this could be a golden opportunity to accumulate shares at a strong risk-reward level.

Why 93.00 is a Favorable Entry Point

Looking at PLTR’s price action, the recent pullback has brought it to a more reasonable valuation after its rapid climb to 125. A buy-in at 93.00 means I would be purchasing well below that peak, providing an excellent margin of safety. Furthermore, PLTR’s long-term potential remains intact. As an AI-driven software company with deep ties to government contracts and the private sector, its business fundamentals remain strong. If the stock rebounds from this level, entering at 93.00 could prove to be a brilliant move.

The Technical Setup Supports a Bounce

The Bollinger Bands suggest that PLTR is nearing the lower band, an area where stocks often find support and reverse. Additionally, the KDJ indicator, which measures momentum, is showing deep oversold conditions, increasing the probability of a bounce. If this reversal materializes, not only will I avoid assignment, but I will also walk away with free premium—essentially earning money while waiting for a market recovery.

A Win-Win Scenario

No matter how the trade plays out, my sell put strategy at 93.00 puts me in a favorable position. If PLTR stays above this level, I collect my premium and move on to the next opportunity. If it drops below 93.00, I acquire shares at a price that provides strong upside potential as the stock recovers. With the overall AI sector still experiencing strong growth, and PLTR continuing to expand its contracts, this sell put might just turn out to be a blessing in disguise.

Final Thoughts

Selling puts is a strategy that works best when applied with discipline and patience. While short-term volatility can create anxiety, the key is focusing on the bigger picture. If PLTR continues to show signs of a reversal, my decision to sell puts at 93.00 could lead to either a profitable options trade or a high-quality stock purchase at a discount. Either way, it’s a calculated bet with strong upside potential, and I remain confident that this trade will work in my favor.