Palantir: Beware I’m more cautious.. do this.
Summary
TLDRThe video script discusses Palantir's Q2 revenue growth and suggests that it may be too late to buy the stock at over $30 per share. The speaker advocates for a logical investment approach, highlighting the benefits of selling put options as a consistent income strategy. They provide examples of selling put options on stocks like Apple and Palantir, emphasizing the importance of choosing stocks one is willing to own and those with good support levels. The script also advises on managing put options and finding stocks with tight bid-ask spreads for better trading opportunities.
Takeaways
- 📈 Paler's Q2 revenue was $678 million, a 27% increase from the same period last year, showing an improvement over the 21% growth in Q1.
- 🔑 Paler's expected revenue for the first quarter is around $699 million, which is slightly above the $681 million consensus estimate.
- 📊 The company has raised its full-year revenue guidance by 2% to nearly $2.75 billion, indicating a 23% topline increase for the year.
- 💡 The rapid adoption of Paler's AI platform by commercial customers has already occurred, suggesting that future growth may be different from past trends.
- 💰 Paler anticipates a 47% increase in revenue from US commercial customers to over $672 million this year.
- 🤔 The speaker questions whether over $30 per share is a profitable entry point for Paler stock, hinting at potential overvaluation.
- 📊 The speaker prefers not to chase stocks, including Paler, regardless of the business's quality, advocating for a logical investment approach.
- 👥 Insiders from Paler have shared that some employees prefer using PowerBI and Power Apps over Paler for building apps, suggesting competition in the market.
- 📈 The speaker is bullish on Paler but suggests using put options to enter the stock at a cheaper price than $30.
- 💡 Selling put options is presented as a consistent income strategy, allowing investors to buy stocks at lower prices than current market rates.
- 💼 The speaker emphasizes the importance of selecting stocks for put options that one would want to own, particularly those with good support levels.
- 📉 The strategy involves selling put options with a strike price below the current stock price, collecting income, and potentially owning the stock at a lower price if assigned.
Q & A
What was Palantir's Q2 revenue and how does it compare to the same period last year?
-Palantir's Q2 revenue was $678 million, which represents a 27% increase from the same period last year.
How does Palantir's Q2 revenue growth compare to its Q1 growth in the same year?
-Palantir's Q2 revenue growth of 27% was an improvement over the 21% growth it reported in Q1 of the same year.
What is Palantir's expected revenue for the first quarter at the midpoint of its guidance range?
-Palantir expects its revenue to be about $699 million in the first quarter at the midpoint of its guidance range.
What is the consensus estimate for Palantir's revenue from the same period last year, and how does it compare to the expected improvement?
-The consensus estimate for Palantir's revenue is $681 million, which is slightly below the expected improvement of 25% from the same period last year.
What is Palantir's full-year revenue guidance, and how does it reflect the company's growth outlook?
-Palantir has raised its full-year revenue guidance by 2% from the prior range to almost $2.75 billion, indicating a projected topline increase of 23% for the year.
What is the expected growth rate for Palantir's revenue from commercial customers in the US for the current year?
-Palantir is expecting its revenue from commercial customers in the US to increase by 47% in the current year.
Why might the speaker question whether over $30 per share is a profitable price to enter the stock?
-The speaker questions the profitability of entering the stock at over $30 per share due to the rapid adoption of Palantir's AI platform by commercial customers, which may have already occurred, implying that the growth may be priced in.
What alternative strategy does the speaker suggest for entering the stock instead of buying it outright?
-The speaker suggests using put options to enter the stock at a cheaper price than $30, as a way to potentially acquire shares at a lower cost.
What is the speaker's view on selling put options as an income strategy?
-The speaker considers selling put options to be the most consistent income strategy, as it allows for buying stocks at prices lower than their current trading value.
What is the key consideration when choosing a stock to sell put options on?
-The key consideration is to choose a stock that you would want to own, preferably one with good support levels and that has already trended down to a level where it's unlikely to go much lower.
How does the speaker define a 'good support' level for a stock when selling put options?
-A 'good support' level is defined as a price point where the stock has bottomed out and is showing signs of stability or a bounce back, making it less likely to fall further.
What is the recommended approach for managing a sold put option?
-The recommended approach is to wait until expiration. If the option is out of the money, the seller keeps the premium. If assigned, the seller can either hold the shares for long-term or generate income through other strategies like covered calls.
Why is liquidity important when choosing an option to sell?
-Liquidity is important because it affects the bid-ask spread. A tight spread means less loss on the transaction, making it more profitable for the seller.
What is the significance of the Delta value when selling put options?
-The Delta value represents the probability of the option being in the money at expiration. A lower Delta means a higher chance the option will expire out of the money, which is favorable for the seller.
How does the speaker view the potential of making 1% per week by selling put options?
-The speaker views 1% per week as a realistic and conservative goal for selling put options, acknowledging that in a bull market or with other strategies, higher returns are possible.
Outlines
📈 Palantir's Q2 Revenue Growth and Stock Considerations
The script discusses Palantir's Q2 revenue, which stood at $678 million, marking a 27% increase from the same period last year. This growth rate is higher than the 21% growth reported in Q1, suggesting a robust performance. The company's revenue for the first quarter was expected to be around $699 million, slightly above the consensus estimate of $681 million. Palantir has also raised its full-year revenue guidance to nearly $2.75 billion, indicating a 23% increase. However, the speaker questions whether the current stock price over $30 per share is a profitable entry point, considering the rapid adoption of Palantir's AI platform by commercial customers, which may already be factored into the stock's performance. The speaker shares insights from insiders and suggests alternative investment strategies, such as selling put options, to enter the stock at a lower price, emphasizing the importance of logical investing and not chasing stocks.
💡 Selling Put Options as a Consistent Income Strategy
The speaker advocates for selling put options as a consistent and potentially profitable investment strategy, especially for those looking for passive income. They explain that selling put options allows investors to buy stocks at a price lower than the current market value, providing a potential discount if the option is exercised. The speaker shares personal examples of selling put options on stocks like American Airlines, Palantir, and Snapchat, highlighting the strategy's effectiveness for generating income. They emphasize the importance of selecting stocks that one would want to own and that have good support levels, as well as managing the risk associated with the strategy. The speaker also discusses the process of selling put options, including choosing the right expiration date and strike price, and managing the position until expiration, either by selling another put option or holding the stock if assigned.
🚀 Maximizing Returns with Weekly Put Option Sales
The script concludes with the speaker's strategy for maximizing returns by selling put options on a weekly basis. They provide a detailed example of how to sell a put option on Apple, explaining the process of selecting an expiration date, strike price, and managing the trade. The speaker emphasizes the importance of liquidity in options trading and warns against trading options with a wide bid-ask spread. They also discuss the potential returns from this strategy, suggesting that while the income from weekly put sales may seem small, it can add up to a significant amount over time, making it an attractive strategy for consistent income and potentially a good retirement income strategy.
Mindmap
Keywords
💡Revenue
💡Growth
💡Guidance Range
💡Consensus Estimate
💡Artificial Intelligence (AI)
💡Put Options
💡Liquidity
💡Expiration
💡Strike Price
💡Assignment
💡Delta
Highlights
Paler's Q2 revenue was $678 million, a 27% increase from the same period last year.
Paler's growth improved from 21% in the first quarter of the year.
Paler expects Q1 revenue to be around $699 million, within its guidance range.
The expected Q1 revenue suggests a 25% improvement from the previous year.
Paler has raised its full-year revenue guidance by 2% to nearly $2.75 billion.
The rapid adoption of Paler's AI platform by commercial customers is noted.
Paler's revenue from US commercial customers is expected to increase by 47% this year.
The speaker questions the profitability of buying Paler stock over $30 per share.
The speaker prefers using put options to enter the stock market more cheaply than $30.
Selling put options is presented as a consistent income strategy.
The strategy involves selling put options below the current stock price to potentially buy the stock cheaper.
The speaker shares live examples of selling put options in their portfolio.
Consistency in making 2% per month by selling put options is highlighted as a good return.
The importance of choosing a stock you like for selling put options is emphasized.
The speaker explains how to find support levels in stocks for put option selling.
The strategy's simplicity and effectiveness for generating passive income is discussed.
The speaker provides an example of selling put options on Apple stock.
The importance of a tight bid-ask spread in option trading is highlighted.
The speaker discusses managing a sold put option and the potential outcomes.
The potential for making more than 2% per month by selling put options in a bull market is mentioned.
Transcripts
let's look at the facts paler Q2 revenue
of $678 million an increase of 27% from
the same period last year this was an
improvement over 21% growth paler
reported in the first quarter of the
Year paler expects its Revenue to land
at about 699 million in the first
quarter at the midpoint of its guidance
range this is very important to
understand because I think it may be too
late to buy paler right now and let me
tell you why if you look at the numbers
this would suggest an improvement of 25%
from the same period last year and is
well ahead of the $681 million consensus
estimate paler has also raised its full
year Revenue guidance by 2% from the
prior range to almost $2.75 billion
right now indicating a Topline increase
of 23% this year however investors
should note that the commercial
customers that have rapidly adopted
paler artificial intelligence platform
to quickly integrate AI into their
operations has already occurred and
looking into the future I do think it's
very bright and paler is expecting its
revenue from commercial customers in the
US to increase 47% this year to more
than $672 million however I am
questioning if over $30 per share is
going to be a profitable price to enter
the stock so I have a better idea I was
completely spot on with the stock by the
way I'm going to show you a very good
example of what I'm doing right now with
options however I want to point out that
we need to be logical investors right
here and I am personally not a fan of
chasing a stock in fact I would say
never chase a stock no matter how good
the business is I talk to insiders
working at paler as usual not Insider
information but insiders working there
and some of the workers also told me
that their last job was at synapse and
they prefer to build apps on powerbi and
power apps way faster than they could on
paler other of my students work at
snowflake which is also growing their
business so paler isn't the only
solution and while I'm super bullish I
am not buying Handover fist on the stock
right now I have a better idea on
entering the stock and using put options
to enter the stock cheaper than $30 I'm
going to show you an example from a
month or so ago right before palen your
rent up so this will be the most
important 8 minutes to watch if you want
to scale your portfolio by selling put
options and make $10,000 per month but
before I jump into my portfolio I just
want to say that selling put options is
literally the most consistent strategy
that I've ever come across I've
literally read a book I've been on Wall
Street and every single resource that
I've come across selling puts is the
most consistent income strategy because
you're buying stocks for cheaper than
they're trading at today so Let Me
Explain If a stock is at $100 or $110
you can sell a put option below the
current stock price and then you're
getting to buy the stock potentially for
lower than it's trading at right now so
let's jump into some examples I want to
show you some live examples in my
portfolio so right here as you will see
I am selling quite a lot of put options
you can see here I have American
Airlines you can see I have palen here
you can see I have Snapchat I love
selling put options for income and
specifically I have a student right now
that is making 2% per month selling put
put options now you may be thinking to
yourself that's not a whole lot of money
but when you talk about consistency 2%
per month is actually a really good
return because that's something that you
can retire with okay so for me if I can
make 2% of course you can go higher it
just depends on your level of risk but
consistently hitting 2% per month is
possible by just selling put options so
this is one of the best retirement
income strategies the way I would go
about this is I would just pick a stock
that you like this is the most important
thing that you can possibly do because
if you're going to sell put options on
stocks that don't like if you do get ass
signed on that stock well that's not
really a good thing but if you want to
own the stock anyways so say that you
really like apple and you sell Apple 160
put okay going into apple right now if
you were to get assigned that wouldn't
be a bad thing that means that you would
get apple at a good price since the
stock is currently at $170 per share so
when selling put options the number one
thing that you want to look for is a
stock that you want to own you also want
to find a stock that has a good support
So how do you find support you basically
want to find a stock that has already
been trending down or has already hit a
level where it's unlikely to go below so
you can see here that over the past 3
months Apple has kind of bottomed out
and had a decent bounce even from the
March level of 169 it is um showing some
signs of just going sideways right now
plus not to mention apple is a really
good brand so if I were to sell a put
option right now it would be on Apple so
I would just go to Apple um options okay
then I would go into sell put option now
the best expirations for put options is
it really depends on what you want to
accomplish okay so if you want to go for
weekly income you can sell options that
are expiring every single week if you
want to go for a monthly income you can
go for options expiring every month one
is not necessarily better than the other
so whether you collect $1,000 in a week
or you know $4,000 in a month it's the
same amount but you get more I guess
more permutations in the weekly strategy
you get to see it more often you get to
have more experience but in the long
term as you sell options as you get more
experience as this stuff becomes more
easy consistent and passive for you I do
recommend going for monthly expirations
so I'm going to show you a one-month
option expiration I'm going to make you
know the option expiration right now May
24th if you're watching this in the
future it doesn't really matter just
copy the same logic that I'm showing you
with you know put options right now my
same thought process and just do it for
your favorite stock whether that's Apple
whether that's Google or Amazon or any
stock but I will say that you don't want
to do the strategy on a stock that
doesn't have much liquidity I'll show
you what that looks like in just a
second after I finish that Apple put
example so check it out if I were to go
ahead and sell a put option at 160 and I
um expand this right now you will see
that the bid here is 176 and the ask is
182 what that means is if you were to be
a buyer you would be kind of forced to
buy closer to 182 and if you were to be
a seller you'd have to kind of sell it
closer to 176 the thing is that's not
necessarily a good thing well it's
actually not a good thing at all that's
why you want to find a option that has a
tight bit ask spread now this is is
actually considered tight this is a $6
Gap here so that means that you're
losing about $3 cuz you're probably
going to get filled by about the
midpoint okay so if you were to execute
this trade you wouldn't get 176 you also
wouldn't get 182 you're going to be
executing somewhere in between so about
$179 okay so if you were to sell this
option you would get paid
$179 okay by opening up one contractor
the Delta here is 21 so there's a 21%
chance of this happening which means
that there's about a 79 % chance of this
not happening so if you were to sell put
option on Apple right now this is why I
love the strategy so much is you would
only get a sign about one out of five
times that means four out of five times
you win and the one out of five times
that you lose you don't actually lose
you just get ass signed on Apple stock
this is exactly how I would open up a
trade I would look for an expiration day
of 28 days I would also pick a strike
price that is well below the current
stock price now keep in mind if you go
lower then you're not going to collect
as much income because the lower that I
go the lower the income becomes but the
closer I am to the stock price obviously
it's going to be more expensive because
your risk of getting assigned is also a
lot more so if I go to an at the money
option at the money option is basically
something that's right at the same price
of the stock you can see here how the
Delta is 046 so that is pretty expensive
now what we're going to talk about right
now is how to manage a sellp put okay
this is really important because a lot
of people open up a position they don't
know how to close it but the good news
is is by selling put options is actually
one of the most simplest strategies ever
because when I sell a put option the
only thing that I do is I wait until
expiration so at expiration what happens
is either it's out of the money which is
cool and then I just wait over the
weekend and on Monday I will sell
another put option or on Monday what
I'll do is if I got assigned the shares
that's totally fine I wanted to get
assign the shares anyways so either I
can hold those you know shares of stock
can wait for it to recover I can just
hold for the long term or I can turn
around and start generating income with
those shares I'll drop you a video about
covered calls that's the covered call
strategy but I want to show you another
example of selling puts and what I would
not do as well as best tricks of how to
make more money consistently by selling
put options so I have a watch list right
here and I would basically look at you
know different stocks that I like so
right now these are the stocks that I
hold Apple Amazon American Airlines
paler so let's just go into paler right
now cuz paler is a favorite of many
investors just because you know for many
reasons paler has a lot of innovation
they are growing a lot as well as the
stock share price is also just very good
because selling a put option is only
$2,200 because essentially when you sell
a put option you need to have the
capital there to potentially buy that
put option all right so potentially buy
those shares 100 shares so 100 shares
would be
$2,200 okay so essentially it would be
$2,200 if you were to get a signed so
what you would do in this example is you
just again go to trade Palance your
options now what I would look at is I
would look at selling put option I would
go for a lower Delta just like I was
mentioning in the previous example now
you can go for really short expiration
days like there's nothing wrong with
that you can go for like May 3rd for
example that's a week out and if you
were to go a week out I mean you're
going to collect a lot less premium and
you're also going to be trading more
often so it's it is a bit more work I
don't know if I would recommend that but
it is really exciting to go shorter term
so you can definitely practice by doing
weekly option Trading so for example you
can go for the 21 strike and just sell a
put option so in this example you would
collect $30 and yes you are technically
having a Max loss of
$270 right it says $270 well the truth
is you can't lose $270 you can if the
company goes bankrupt but that's not
going to happen so when it says
$270 that's not really an issue what you
should think about is do I like the
stock am I ready to buy it don't worry
about the max loss whatsoever in this
example okay in this actual trade that
I'm probably going to place once the
Market opens up so here you'll make $30
which is actually a little bit over 1%
it's 1 and a 12% in a week so if you
were to do this you know four times
basically four weeks in a row you would
collect 6% which is you know more than
the 2% that I mention but of course I'm
trying to be conservative here I don't
ever want to like push the dream I
always want to be very like realistic
with the results so 2% with just selling
puts yes obviously other strategies in
option trading can make a lot more I
have some strategies that are on this
Chann channel that can double your money
right that's a bull call spread that's
more of those aggressive strategies but
for just the most safe passive income
selling put options 2% maybe three or
obviously in a bull market you can make
a lot more so back when Tesla was going
up a lot in 2021 I was selling put
options on Tesla I was making way more
like 1% a week easily so 1% a week is
actually one of my biggest goals that's
a goal and usually I am able to hit that
because I'm mixing other strategies in
my portfolio not just selling puts so I
am us usually able to hit 1% per week
but obviously that's a fantastic result
and that is something to strive for
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