Once again, standard monthly options will expire at the end of the week. We have six trades with accrued profits of $749 coming to a conclusion.
The of the profitable trades three had a bullish tilt while one had a bearish tilt was in the black and one short vol traded is also in the black. The one trade that was a loser was a bearish trade on Palantir, which we think is one of the most overvalued stocks in the marketplace today. Under normal circumstances, companies like Palantir that sell whatever to the US government, rake in the cash as the government is not a price sensitive customer when purchasing from politically connected individuals and companies. In the new world of DOGE, where the government has or will have to justify their sending, we thought easy money may be harder to come by. So far, other investors disagree with our assessment, and they are buying the stock hand over fist. Our suggestions got run over and that happens from time to time. Trading spreads (vertical or diagonal) is one way to limit one’s risk, and it is a structure think people should use in both bullish and bearish situations.
The above exhibit summarize trade suggesting coming to expiration. We suggest letting them expire worthless as they are generally out of the money. In the case of the MicroStrategy iron condor, we suggest keeping a close eye on the trade as it is close to the money and it is a volatile stock. The best-case result is that the stock trades sideways to down from $404 and change. In this circumstance, profits will be maximized. If on the other hand, the stock trades above $410, losses start to accrue, and it will make sense to close the trade a few days before expiration to minimize losses or preserve a nominal profit.
