DailyPlay – Opening Trade (PLTR) – November 28, 2023

PLTR Bullish Opening Trade Signal

View PLTR Trade

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish

Details: Sell to Open 12 Contracts Jan 19th $20/$17 Put Vertical Spreads @ $1.33 Credit per share.

Total Risk: This trade has a max risk of $2,004 (12 Contracts x $167) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $167 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is bullish and is expected to continue higher.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 91

Stop Loss: @ $2.66 Debit. (100% loss of the value of premium received)

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

Investment Rationale

Bulls point to artificial intelligence software as a  driver for ongoing Palantir growth. Palantir announced its newest offering, the “Artificial Intelligence Platform,” early this year. As of mid-September, Palantir says the AIP now has 150 users, up 50% within the last month with exponential growth thereafter.

With the $18 mark acting as support followed by a recent bounce higher, we believe that PLTR will continue this bullish trajectory over the duration of this trade. We will look to Sell the Jan 19th Put Vertical Spread at $1.34 Credit per share. With a hypothetical portfolio of $100,000, I recommend risking 2% of the portfolio’s value to this trade, which is 12 Contracts for a risk of $2,004. We will set a stop loss on the put spread at around 100% of the value of the premium received @ $2.68 Debit.

PLTR – Daily