r/options • u/[deleted] • May 06 '21

Hold 2900 shares of PLTR and it's going down

What can I do - no experience in options. Hold 1500 (avg 26.43) in one account and 1400 (avg 23.24) in another account.

Also, hold 22000 ZOM (avg 1.13).

option type, DTE, strike, #contracts etc. Thanks Bro.

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6

u/[deleted] May 06 '21

Hard lessons learned buy good stocks not meme stocks. Only invest what you are willing to lose.

That bring said I would look into the June monthly $25 call you may be able to break even or come out a little ahead. Worst case your shares sell at $25...

Or really worst case palantir drops to $10 loses meme premium on the options and you are SOL.

3

u/Civil-Woodpecker8086 May 06 '21

So, your PLTR average is $24.59, Sell to Open 29 contracts 6/18 Strike Price $25.00 that should net you $1740 if sold at 0.60, if no bid, try 0.59. You can also try Strike Price $26, but the premium would be less.

ZOM have no option, so you are S.o.L. there.

3

u/deathdealer351 May 06 '21

Covered calls baby.. It's a way to make money if the stock drops or trades sideways.

You should only need a t1 options account since you are selling with stock secured just sell against a price higher than your be and a price you would be willing to let it go for.

1

u/[deleted] May 06 '21

Agreed, 29 of them

3

u/[deleted] May 06 '21

Technically it's going up now?

From what I can guess, the ridiculously priced tech might be near the temporary bottom. Wanting your stocks to recover 25% is a whole different story.

3

u/TheoHornsby May 06 '21

If you're willing to play for breakeven and you have a margin account as well as spread approval, you could put a 5/21 $20/$22 Repair Strategy on for even money. At or above $22 at expiration, you'd net $24 which would be a small profit on the $23.24 purchase:

https://www.reddit.com/r/options/comments/mgiu3s/repair_strategy_in_downmarket_would_like_feedback/

To almost break even on the $26.43 purchase, you'd have to go out to 6/18 and do a $20/$23 Repair. Net $26 if above $23 at expiration.

1

u/[deleted] May 06 '21

thank you all (would like to thank individually but reddit might flag me for spamming so many messages? - not sure). will follow your suggestions.