The Tale of Two Strikes

The title is AI generated, but mainly because I am bad at titles. The posts are raw content from my brain. So, let's jump right in.

Yesterday I mentioned my prospects for today: a call option for Palantir (PLTR) and a put option for Simon Prop Group (SPG). I went in for both, so let's start looking at the performance for each.

PLTR

I've kept my dotted line highlighting the uptrend observed during analysis last night. In the chart we can see that PLTR closed above the 20 and 200MA, another strong bullish signal. The RSI is also starting to touch 70 which means that overbought position may be reached tomorrow, April 23. As mentioned in my analysis last night, I am only planning to keep this contract for two days, which means I am exiting tomorrow.

I waited the first 30-40 mins after opening and waited for my entry. I purchased my contact of strike price $152 at $3.86 this morning. The contract expires May 1 and it is valued at $5.10 right now. Meaning, I've had ~32% return today alone. Now, I do see that PLTR has dropped overnight, but I'm not phased by it. I'm sure some people are taking profit right now, but the uptrend above chart is still going. I'll give it another day or two for it to continue before it re-consolidates.

Let's now look at the put in SPG.

Again, kept the dotted yellow line highlighting the downtrend. We see that the performance today was constant drop form the moment it opened. RSI has reached below 30 mark. At the same time, we see that SPG closed below the 20MA but is still above the 200MA. While I do expect it to go below it, it might not happen in the next two days, who knows? I will say though the aggressive drop of almost $6 was significant. We may continue to see it drop tomorrow some more.

I didn't "sell" a put because I would've been acting as the insurance. In order to sell you need to buy 100 shares to cover potential losses. I did instead end up buying a put instead. While it was cheaper during the earlier hours, I jumped in later in the day so my profit here has been slower.

I bought the put for $195 expiring May 15 for $2.52 and it is currently priced at $2.77 giving me a 10% return. I'm not mad at it, I was just late, but I expect more profit tomorrow.

This is the first time I take two trades within the same day. This is also the first time I officially trade a put, which is exciting to see, and more so, because it is literally two strikes; one call and one put. Seeing profit from both makes me feel good.

I am happy that the strategy I’ve found works. i’m finally realizing first hand how this is a marathon. Seeing my account grow from last week to this week by 25% and the month by 78% is a crazy realization. Today alone I am up 23% and I can’t wait for that to keep growing.

I have a busy night so I’m not sure if I’ll get to write my prospects for tomorrow. Though I will take a look and decide if I have time to open new contracts tomorrow after I exit my existing ones.