You could buy 100 shares of
$PLTR right now for $12,400.
Or you could sell a $115 cash-secured put expiring 8/21 and get paid $520 today.
Three possible outcomes:
1.
$PLTR stays above $115
You keep the $520 premium. That's a 4.52% return on capital in 30 days, or 55% annualized.
2.
$PLTR drops below $115 but you still like the stock
You roll the put down and out to a lower strike and later expiration, collecting additional premium in the process. You get paid more to wait at an even better price.
3.
#PLTR drops below $115 and you get assigned
You buy the shares at $115, but your real cost basis is $109.80 because of the premium collected. That's an 11.5% discount from today's price. Then you start selling covered calls.
That's the power of selling options.