PLTR Sell Put — The Trade Is Working. Now It Becomes a Risk-Management Decision.
Another sell-put position is progressing well.
Position: PLTR 4 Sep 2026 $139 PUT — Short
Premium / Cost Price: $2.16
Current Option Price: $0.60
Unrealized P&L: +72.19%
The numbers tell the story.
I sold the put at around $2.16, meaning approximately $216 premium collected per contract.
At the current option price of around $0.60, buying it back would cost approximately $60 per contract.
So roughly $156 of the original $216 premium has already been captured.
That is around 72% of the maximum premium, consistent with the P&L shown in my Tiger account.
But this is where I think many traders focus on the wrong number.
The question is no longer:
“Can this trade make more money?”
Of course it can.
The better question is:
“Is the remaining reward worth the risk I still have to carry?”
Why I was comfortable selling the $139 PUT
When I sell puts, the strike is never chosen simply because the premium looks attractive.
The first question is always:
Would I genuinely be comfortable owning the company at this level?
For this PLTR position:
Strike: $139
Premium received: $2.16
My approximate effective entry price if assigned would therefore be:
$139 − $2.16 = $136.84
That $136.84 is the number that matters more to me than the $2.16 premium.
Because when selling puts, I always assume assignment is possible.
If I wouldn't be comfortable owning the shares at the effective entry price, I shouldn't be selling the put in the first place.
The remaining risk/reward has now changed
At entry, the maximum premium available was approximately $216 per contract.
Today, only around $60 per contract remains.
So more than 70% of the original reward has already been earned, while I am still carrying the downside exposure of a $139 short put.
This is an important part of options trading that sometimes gets overlooked.
The risk/reward profile of a position changes as the trade develops.
A trade that made perfect sense when I opened it doesn't automatically mean I should hold it all the way until expiration.
As the option premium approaches zero, I start asking:
How much more can I realistically make?
How much risk am I still carrying?
Is my capital better deployed elsewhere?
My philosophy with sell puts
I don't sell puts because I believe a stock can never fall.
I sell puts because I want to structure the trade so that several outcomes can still work for me.
If the stock stays comfortably above my strike:
I collect premium.
If time passes and the thesis remains intact:
Theta works in my favour.
If implied volatility contracts:
The option premium can fall further.
And if I eventually get assigned:
I already know the effective price at which I'm prepared to own the shares.
That's why, to me, selling puts isn't simply about collecting premium.
It's about getting paid while waiting for a price I am willing to accept.
This PLTR trade is currently showing +72.19% unrealized P&L.
Nice number.
But the bigger win is having a process that tells me what to do before, during and after the trade moves in my favour.
Good trades make money.
Good processes keep you in the game.
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