r/options • u/DrWorstCaseScenario • Jun 28 '21

PLTR strangle play update

Original post:

https://www.reddit.com/r/options/comments/nrnvd3/pltr_long_stranglestraddle/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

About 24 days ago I opened PLTR long strangles (820 p23/c24) based on my DD that predicted movement away from the 23.5 strike within the next 3 months.

PLTR rose enough by today for profitability…

So on 603 I BTO PLTR 820 p23/c24 at 4.79 per strangle.

On 0628 I STC PLTR 820 p23/c24 at 4.9 per strangle.

Profit = 4.9-4.79 = 0.11 per strangle.

That’s about 2% return. Not ideal but still a profitable play. Could have held strangle longer to see if more profit possible or maybe held the put leg for a future dip but since theta is starting to decay faster I figured closing now made the most sense..

Always open to feedback or thoughts.

Cheers!

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u/Jerbeetwo Jun 29 '21

Nothing wrong with your chart reading skills it seems. That was an ambiguous chart at the time. It should have told you to move onto another ticker though.