Trade Alert - (PLTR) April 16, 2025

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Tech Alert - Palantir Technologies Inc. (PLTR) – BUY

Buy Palantir Technologies Inc. (PLTR) May 2025 $120-$125 in-the-money vertical BEAR PUT spread at $4.40

Opening Trade

4-16-2024

expiration date: May 16, 2025

Portfolio weighting: 10%

Number of Contracts = 22 contracts

Palantir has had a nice short-term rebound from $73 per share, and this is a position that bets PLTR won’t be above $120 per share by May expiration.

Tech stocks have had a tough time lately, and I will sell this PLTR bounce.

PLTR stock has been a huge winner from a change in the Federal Government, but I think we are limited to the upside for now.

Don’t pay more than $4.50.

Here are the specific trades you need to execute this position:

Buy to Open 22 May 2025 (PLTR) $125 puts at………….$30.70

Sell to short 22 May 2025 (PLTR) $120 puts at………….$26.30

Net Cost:……………………..…….………..…….......................$4.40

Potential Profit: $5 - $4.40 = $.60

(22 X 100 X $.60) = $1,320 or 13.64% in 30 days

If you are uncertain about how to execute a bear put options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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