New trade on a new stock
- Dan
- Dec 19, 2023
- 1 min read
If I want to trade in the US markets, for me, trading hours are either 12am-6am in winter, or 1am -7am in summer. That's the main reason why I avoid it. But you get much more liquidity, better choices and better spreads. At the moment it's not bad, I can research in the few days beforehand, then wake up at 6am and place my trade while the market is open. I should wake up at 6am more often anyway.
I skipped any December expiry trades this month. I've not been feeling ok as a result of personal things that took place in October / November. But I started looking for trades last week again, and just this morning received a very sweet premium. Here's the details:
I wrote a 2024 Jan 26th expiry 17.00 Put on Palantir. I received a 0.74 premium which represents 4.31% return on funds at risk. I was interested in buying Palantir anyway. They are currently trading at 17.83. Seems ok to offer to buy them for $17 in January, but also receive 74c for the trouble. That's a 9.2% buffer before I break even.
In total, it's a 38 day trade, so if it expires worthless, annualised that's 41.42%
The other factor that I need to consider is that this trade was all in USD, so I've got currency risk too. Today's rate is 0.67 USD to 1 AUD, so my $3665 premium is about $5470 AUD
Here's the 3 months leading up to this morning's trade:



Comments