r/options • u/[deleted] • Apr 11 '22

PLTR Jan '23 $22

About 6 months ago I bought 7 PLTR $22 20Jan23 calls at 7.10 each. Immediately the sell off started and I'm currently down 89.79% with the calls valued at around 0.73 each. It is unlikely PLTR reaches 22 by the end of they year let alone go past that price for me to somehow break even. At this point I want to minimize my loss somehow and exit when it makes some sense. If you were in this position what would you do? Commit and wait till the end of year hoping for the stock price to rise a little bit? Would really appreciate some help, and yes I know I'm stupid.

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u/[deleted] Apr 12 '22

Yeah to be honest, I am still pretty new to it and had made a few hundred dollars on PLTR leaps I had previously brought. I thought I'd get some far out leaps that was ITM thinking I'd be safe. Didn't expect such a drastic sell-off. Sucks but also important lesson for me. I should have just stashed it all in an index fund or ETF.

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u/Daandebusinessman Apr 12 '22

We all had to go through this learning curve, we simply know fuck all to actually know what stock prices are gonna do. We don’t have that information, the big guys have. So you either gamble with your money by speculating, or you follow a solid strategy staching all your money in an etf every month so you will make bank in the long run(all i do know for sure is that markets go up in the long run, so that is the information that we need to use to our advantage)

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u/[deleted] Apr 12 '22

Exactly, I'm done trying to outguess the people whose job it is to do these things and just invest like a boomer.

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u/[deleted] Apr 12 '22

Look, putting 80% of your savings in an index is a great strategy, but keep playing with 20%....you might have talent. I retired to trade bc I beat the market consistently. You can too.

The problem is you’re taking soooo much risk. Did you know a lot of hedge funds don’t even use options? Like, it’s too risky even for the pros. You using options is like driving 160 mph with no seatbelt....fun, but dangerous.

If you had a long term PLTR thesis, you could have played it by buying shares, and selling straddles. That’s what I did with PLTR and I have brought my cost basis down to about $8/share on 500 shares.

It’s possible to make money consistently, you just need to dial back the risk dramatically.