3/5/2021 Bottom fishing beaten down stocks. Shorted puts on PLTR and PTON right near market close. I’m bullish enough to want to own shares at the current price.

I sold 4 of the 25 strike PLTR puts expiring next week for $2 and one 105 strike PTON put expiring next week for $4.4. I suspect we are near a bottom because of the price action and think we will gap up on Monday.

I chose at the money or slightly in the money puts because I’m bullish enough to want to hold shares at the current price. However, if prices increase in the short term or volatility decreases, I don’t mind receiving the high premium from these weekly puts (~8% gain for PLTR and ~4% gain for PTON). I am not using a stop loss, but the position sizing is relatively small so my risk is capped.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s