Backtest Cash Secured PUT Options Trading PLTR Updates

Backtested: PLTR Cash Secured PUT – March 2021

Holding until expiration vs closing at 50% on various DTE shows we profit when closing earlier.

Holding this contract until expiration realized a loss of -$12 per contract. This could been avoided by sticking to the “Get out at 50%” rule, in which case it could have been closed for +$118 profit per contract.

Here’s the backtest for both scenarios:

  • Sold March26’21 Cash Secured Put PLTR $25 @2.35 on 2021-02-16
  • Bought March26’21 Put PLTR $25 @2.47 on expiration
  • Loss -$12 per contract
  • DTE 38, hold until expiration
  • ROI -0.53%

Holding till expiration resulted on a $12 loss per contract:

PLTR CSP PLTR March26-2021
PLTR CSP PLTR March26-2021

However, if we get out at 50% to manage risk (since day 1), results on +$118 profit per contract after only 9 days.

And getting out at 50% 21DTE results on +$118 profit per contract as well:

Lesson: Manage your risk and winners.

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