Shorting Palantir's Out-of-the-Money Puts Makes Sense Here for a 2.26% Yield in 3 Weeks

Palantir Technologies (PLTR) stock is worth considerably more than its present price given its huge free cash flow and management's forecast. Shorting a 5% OTM put for March 22 expiry produces a 2.26% yield.

I discussed this strategy in my last Barchart article on Feb 11, “Palantir's Massive FCF Margins Could Push PLTR Stock's Value 25% Higher to $30 Per Share.” At the time, PLTR stock was trading for $24.38 per share. Today it's at $25.04.