Risk Managing Earnings: Palantir
$PLTR
PLTR 0.00%↑ reports after the bell. It’s my largest position. The stock is currently at $41.50. I have two separate hedging positions against my shares -
Sold Call Spreads - $45/46 spreads. I will lose $75 for each spread contract if PLTR 0.00%↑ closes the week at $46 or higher ($46-45 spreads, less the $25 I collected).
$32.50 puts. I bought these a few weeks ago before implied vol began creeping up. They coincide with the first unfilled gap range below. I call these nightmare protection. I will sleep easy tonight because of these.
These are insurance positions. Designed to lose, and allow me have a clear head if they don’t, as I’ll collect some short term income and be in a position to make a level headed decision about the position after the market digests the report.