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Palantir is crashing hard—so is now the time to buy puts? In today’s deep-dive session, we break down exactly how to approach long put trades, how to manage risk, and how to think like a professional fund manager instead of a hobbyist. This is part of our Options Deep Dive Wednesday, where we get tactical and nerd out on the details that separate real traders from casual gamblers.
We start with a top-down analysis—market first, sector second, stock last. The truth is, 40% of any move comes from the market, 30% from the sector, and only the last 30% from the stock itself. That’s why shorting in a bull market is a disaster waiting to happen, and going long in a bear market is just as painful. Right now, breadth is breaking down across nearly every sector. Only real estate is holding steady, while tech—the sector Palantir lives in—is flashing warning signs.
Once we narrow into Palantir, the chart shows a clear sell signal with resistance building at order blocks. Fear and greed sentiment is swinging from extreme greed to sharp fear in record time. That’s a dangerous setup, and it means anyone looking to buy puts needs to tread carefully and with a plan.
We go step by step through long puts vs. short puts, clearing up one of the most common beginner mistakes. A long put gains value when the stock falls. A short put, on the other hand, is a bullish trade where you’re betting the stock won’t collapse. Knowing the difference and not accidentally clicking the wrong side of the option chain can save your account from disaster.
The lesson doesn’t stop there—we also dive into intrinsic vs. extrinsic value and why out-of-the-money options are often cheap for a reason. While they may look attractive, they decay far faster than in-the-money options. We run the numbers to show how an “expensive” option can actually be the smarter and cheaper play when you factor in time decay.
From there, it’s all about position sizing and stop losses. Using ATR to size trades ensures you aren’t blindly risking too much just because volatility jumps. In fact, Palantir’s volatility has surged 38% in just two weeks—meaning if you trade the same size, you’re automatically taking 38% more risk. We show you the math to scale your trades correctly and protect your portfolio.
Finally, we cover one of the most powerful tactics in the options playbook—rolling options. Instead of setting static profit targets (which can leave money on the table or trap you in bad trades), rolling allows you to reduce risk, free up capital, and stay in the trade while continuing to press your edge. Done right, rolling puts can give you a huge advantage that plain stock traders don’t have access to.
We cover:
➡️ Palantir technical analysis
➡️ Options trading explained
➡️ How to buy puts correctly
➡️ Market breadth and sector breakdowns
➡️ Position sizing with ATR
➡️ Rolling options for maximum impact
If you’re serious about trading, this is the kind of session that will keep you from making costly mistakes and help you approach the market with discipline.
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