Close the Palantir options for a loss ahead of earnings

August 03, 2022 - 11:58 am

We have bullish option positions on PLTR that we entered on April 13, 2022, and they report earnings in a few days on Aug 8th.  Looking at the last three earnings annoucements, the stock has gotten hammered, and we're exiting our position today.

We are buying back the Jan 2024 $10 Puts for $2.40, for a loss of $.20 cents.
We are selling the Jan 2024 $15 Calls for $2.30 for a loss of $1.30.

The loss on this trade is 9% on the Puts (net 2%) and 36% on the calls. 

We are bullish on the company, but until they get a new CEO or do something drastic to rebuild investor confidence we are staying on the sidelines on this one.