Everyone is talking about SpaceX right

now, but if I had a hundred thousand

dollars, I'd do things really

differently. So here's my humble opinion

on SpaceX and then I'll show you two

ideas that I have instead to generate

income without taking crazy risk on two

stocks that I think are going to do very

well in next three to six months. So in

just a couple of days, SpaceX is going

public. SpaceX can be an incredible

company and honestly it can still be a

terrible trade if the valuation is too

aggressive. And at the reported IPO

price of a hundred thirty-five dollars

per share, investors may be paying

nearly ninety-five times revenue for a

company that still lost billions of

dollars last year. SpaceX is reportedly

looking to raise about seventy-five

billion dollars in this IPO. That would

make it the biggest IPO ever. Not one of

the biggest, literally the biggest. A

one point seven seven trillion valuation

means SpaceX would instantly become one

of the most valuable companies in the

entire world. Now, if SpaceX doubles

after IPO, which a lot of people online

are saying and honestly hoping for, then

the valuation would be three point five

trillion dollars. That would mean

investors are paying almost a hundred

ninety times last year's revenue. Now,

I'm not saying SpaceX is automatically a

bad investment. In fact, Goldman Sachs,

my former employer, reportedly expects

SpaceX AI revenue to increase one

hundredfold by 2030 from around three

point two billion in 2025 to three

hundred twenty-two billion in 2030. But

the problem is with nearly a two

trillion dollar IPO valuation, it

honestly just doesn't look that

appetizing for me. So the first stock

that I want to go over is Palantir

stock. I currently hold a lot of

Palantir, twenty-six hundred shares

myself, and Palantir has been coming

down. In fact, over the last one week

it's down thirteen percent. So it makes

me very excited to see a growth stock

like Palantir down a lot. So a great way

to generate income and buy stocks that

you want to own long-term is by selling

put options. Palantir has approximately

eight billion dollars in cash and very

little debt. Palantir also has their

hand in the cookie jar of the

government. This is why I like Palantir

so much long term because they are

essential to the AI story that we're in

right now. Palantir is making

increasingly high revenues and they're

bringing more of that money to the

bottom line with high margins. My

average cost on Palantir is $22.84 and I

mentioned the stock in my Discord

community a long time ago. In fact, I

bought it at IPO. Now, the strategy that

I want to run on Palantir myself is

selling put options to acquire more

shares of the stock at a favorable

price. Over the last 1 month, Palantir

is flat. A lot of investors got tricked

into buying Palantir in the high 150s or

even 160 range. Now, Palantir is back

trading at $135 per share. A very

interesting strategy that I'm going to

implement is going to be to sell put

options. Let me show you step-by-step

what I'm going to do personally. Here is

the option chain. Now, before I show you

the trade that I'm making, just know

this is for educational purposes only

and I'm not a financial advisor. Now,

let's go to sell put option and my goal

when I sell put options is I want to

generate income. When I sell a put

option, I'm really benefiting from the

premium that I'm collecting and I'm also

looking to enter into the stock. So,

that's what makes this such a strong

strategy is because if you want to buy

the stock outright, you're going to have

to pay $135 per share, right? If you

want to buy Palantir today, that's fine,

you can buy it for 135. However, if I

want a price that's lower than the

current market, I can actually sell a

put option. So, I'm going to go to sell

put. I'm going to pick an expiration

date. Now, typically I do like to trade

monthly options and I actually like the

third Friday, which is a traditional

Friday. This is what I do in my Discord

community. I look for monthly options

that I can sell and I look for the

premium to be attractive. I also look

for the strike price to be around a

support level or a valuation or a price

that I'm comfortable buying the stock

at. So, I'm going to choose July 17

right now and I'm going to go slightly

out of the money. So, an at-the-money

option would be 135 because the stock is

currently trading for 135. So, an

at-the-money option would be 135. An

in-the-money option you would not want

to do would be something above 135 and

this means that your assignment risk

would be pretty high. Here, the delta is

0.52. 0.52 delta just means that there's

a 52% chance of this option expiring in

the money. Although this option would

still make sense for most investors

because look, the 140 strike price is

what you'll have to buy it at. However,

the premium here is $10. So, even

selling an in-the-money option would

give you a break-even price of $129 per

share. That is much more attractive than

$135 per share. In fact, you're getting

over $5 in terms of a lower cost than

the current price of Palantir. However,

with this example, because this option's

in the money, you're almost certainly

going to be assigned and your risk is

that you will have to get assigned 100

shares of the stock at expiration, which

would be July 17th in this example. Now,

I want to do something a little bit

different within my portfolio. So, I'm

looking at the 130 strike price right

here. The reason why I want to go for

130 is because that's $5 below the

current value of Palantir stock. So,

that gives me a $5 discount. Now, rather

than chasing hype IPOs or going for

something risky, I'm very happy owning

high-quality companies for the long term

and selling put options to enter into

those companies. You see, I use selling

puts as a way to enter into a stock, an

entry strategy. So, the reason I like

130, you can see here, is it has a very

nice bid-ask spread. The bid is 540, the

ask is 560. That's very tight. The

tighter the bid-ask spread, the better

because every time you trade, you are

losing money if you trade a lot and the

bid-ask spread is wide. A wide bid-ask

spread is anything, in my opinion,

around 50 cents or anything more than

that. Here, this is only 20 cents

difference, so that's really tight and

nice. Now, this implied volatility on

Palantir is 49%. That means that implied

volatility is actually really juicy

here. When implied volatility is under

30, that's pretty low volatility. That's

pretty safe stocks like Pepsi or

Coca-Cola or something like that might

be under 30. Then, a medium volatility

stock would be between 30 and 50. So,

Palantir is right at the higher end of

what normal volatility is and is

becoming high volatility. Anything above

50 implied volatility is high. So, this

just means that investors are uncertain

and they believe the stock can have a

lot of volatility, either up or down.

This does not indicate any direction at

all. Implied volatility is specific to

how much the stock can move. So, this

49% is pretty close to high volatility.

Now, this all contributes to the

premium. The premium here is $5.40. In

fact, this is a really good premium

because if I were to sell this option,

this is the premium that I collect. So,

I want to open up this 130 put option

for July 17th, and this is going to have

a strike of 130, meaning that if

Palantir goes to 130 or below, I will

get assigned on July 17th. Now, early

assignment does also happen sometimes,

but it really doesn't make sense in most

cases because the time value of the

option is going to be worth more than

just exercising. For example, this 135

put option is in the money because

Palantir is 134.81,

right? The market's opening right now as

I'm making this video. Now, this is an

in-the-money option, right? If you

exercise it, you would make about 19

cents, something very, very, very small,

right? And you can see here that the

premium is $755. And this value here is

essentially the reason why the premium

is high, and this option is really not

in the money by that much, is because of

time value. Time is money. Time is very

important factor within option trading.

So, here, this 755 is all of it is

basically time and volatility and other

factors that are not in-the-money

factors. Now, the market just opened up.

It's 9:30 a.m. as I'm making this video,

and Palantir is basically jumping up and

down between 135. So, for me, I'm

comfortable going for 130, and this has

a premium of something around 550 or

580. It's also bouncing around as this

video is live. But, you can see that the

amount of money I'm making here is this.

That is the max profit. I cannot make

more than this. When I sell a put

option, that is as much money as I can

collect, not a single dollar more. So,

you have a defined return. Now, you also

have a defined risk, and a lot of

investors confuse this, and they get

confused like, "Henry, wow, that's

$12,000 that I can lose." Well, in

theory, if Palantir were to go to $0 and

it would go bankrupt, then yes, your

position would go down by this much.

But, in reality, Palantir has support at

130. Palantir has major support at, you

know, 120 and it has, you know, lots of

assets, lots of intellectual property.

You know, the chances of it going down

to zero are slim to, yeah, very, very

slim. So, anyways, you shouldn't look at

the max loss as exactly your max loss.

Instead, you should look at this as a

capital requirement. Because you do need

to have 100 shares worth of collateral

within your account. So, if you sell a

put option, you collect 570, you need to

have $12,000 in this example to have

enough cash to take assignment. And

again, the risk of assignment really

happens once the stock is 130 or below.

So, even at 130, you can get assigned at

expiration. Especially if it's 129 or

anything under that, then you are

definitely going to get assigned and

your delta is going to increase. The

delta right here explains the chances

that this option can basically expire in

the money. Right now, the delta is 35,

which means there's only 35% chance that

this option is going to expire in the

money, which is pretty nice. That means

if there's a 35% chance of this

happening, that actually means that

there's a 65% chance of this not

happening. That is awesome. That is

awesome because 65% of the time that

means you will be winning on this trade.

So, in reality, if you were to do this,

you know, 10 times or let's say 100

times, 65 out of 100 times you would

just end up making this premium, which

is $585 and this option would expire

worthless and you would do nothing.

However, if this option goes below 130,

which would happen about 35% of the time

or according to the delta now, it's 37%

of the time, it's going to change and

fluctuate as the stock changes, then

basically you are going to get assigned

100 shares. And that's not really a bad

thing because rather than buying

something like SpaceX, which has a crazy

high valuation, it's like $2 trillion

almost and they don't have a whole lot

of cash flow yet, instead I'm looking at

a company that has major cash flow and

Palantir also has major momentum.

Palantir's growth rate is 85% on the top

line growth and it had 133% US

commercial growth and a 71% full year

revenue outlook, which is really

unusually strong for a large cap

software name. And again, it just speaks

to how good Palantir is and what kind of

competitive advantage they have within

the market. Now, one more thing that I

love about Palantir before I move over

into the second stock, Nvidia, is margin

expansion. Palantir has expanded from

31.6% to 37% on the last 12 trailing

months for their margin, which is really

amazing for a software company. Now, a

lot of skeptics will say that Palantir

basically has a high PE ratio. And I

want to mention PE ratio very briefly

because it can be very important for

selling put options. You see, when you

sell a put option, it's essentially a

bullish strategy, right? You are saying

that I'm okay to acquire the stock at

the price that I am selling at that

strike price. And you can see here that

Palantir right now has volatility. And

if I scroll down here, I want to show

you the PE ratio because the PE ratio is

very high. So, selling a put is

basically like kind of you're ready to

acquire shares, right? So, you're

essentially going to be a shareholder in

the stock if you get assigned. The PE

ratio here is very high. It's at 150.

But I want to remind you guys that I've

been doing this for over 10 years, and a

lot of people were saying Palantir is

way too expensive, and that was last

year when Palantir had a 600 PE ratio.

You can see how fast the PE ratio fell

from 600 down to 150. And over the last

1 year, Palantir has had a positive

return. Albeit, this is not really much

of a big return. It's only 6%, so that's

not been, you know, the most attractive

return. But for me, I've been selling

put options, and I have been generating

income personally on Palantir, and I've

been doing this in my Discord community.

And to be completely honest with you, my

members have done great. We have done

fantastic as a community despite the

stock not really having the highest

return. And that's because selling

options, you collect the premium, and

even if the stock has volatility, if it

goes slightly down, slightly up, you

still have that premium. That premium is

yours, and along the way I've been

acquiring shares. So, you know, my

average cost is still very low. But I

just kind of point to show you that

selling put options can be an amazing

strategy, uh not just for entry, but

also for income generation for someone

looking to just collect premium. And

sometimes you get assigned, and you get

a stock that you like and other times

you don't get assigned and just collect

premium. I mean, it's one of the best

strategies in my opinion. It's a

strategy that I've been using for over

10 years and anytime I do coaching

within my Discord community and I also

have my one-on-one students, I will do

selling puts with them and I'll just

acquire high-quality companies. So,

let's go into the second stock which is

Nvidia. Nvidia has had earnings recently

and like always, basically they reported

really good earnings and the stock went

down. However, if you actually look at

Nvidia over 3-month period, it's done

very well and then last 1-year period,

Nvidia has also had a very nice return.

So, what I'm looking to do is I'm

looking to acquire Nvidia in a very

similar way that I want to acquire

shares of Palantir by selling put

options. Put options for me is basically

the ultimate strategy that I love to use

for any single stock that I want to buy

instead of just buying it out right in

the market, I just sell a put. And a

typical delta that I like to go for is

around 30 delta. That's why I showed you

an example of 30 delta roughly on

Palantir. And I'm going to do something

pretty similar to Nvidia. I'm going to

look at the strike prices that I want to

execute. Now, I actually want to execute

this live, so I'm going to execute this

here with you guys as I'm making this

video. So, Nvidia is shooting for 210,

so I'm going to go to trade Nvidia

options and now I'm going to select for

a strike price that I want to own

Nvidia. So, here is the option chain,

essentially the expiration date that I

can choose here. I can either go for a

short-term expiry or a longer-term

expiry. I always tell like new traders

that weekly expirations are completely

okay. A lot of investors want

shorter-term expiry because, you know,

it's it's can be more attractive. It

really can be because the premiums can

really add up. So, if I go for, let's

say, June 18th, which is about 7 days

out, you can see here when I go to sell

put option, you will take notice that

the premium can be very high in the

short term. I'm going to compare this to

a longer-term option. So, for example,

let's look at 200, right? The 200 here

is 177. Okay, so that's not a crazy

return, but it's a okay return within a

week. Now, if I look at something like

30 days out, you're going to see here

that the 7-day option was 177, but the

30-day option is basically a little bit

under 500. And that is less. That's less

money than doing it on a weekly basis.

However, what I like about selling puts

on a monthly basis and why I love the

strategy so much with my students is a

lot of my students really want to

generate more passive income. They want

something that is more stable and they

don't have that much time to manage the

strategy. You know, on a weekly basis,

you can sell put options but in my

opinion, it is more risky because

there's just more management. There's a

lot more work and if it goes into the

money, then you will be assigned sooner

versus going for something on a monthly

basis that gives you more time. So,

that's why I prefer monthly. But, you

know, we can also go for something in

the middle. Let's actually go for June

24 in this example. Now, this is a

15-day option, so it's 2 weeks out, so

kind of somewhere in the middle. Now,

what I want to do is I'm going to expand

this option right here and I'm looking

for the bid-ask. You can only see here

and I kind of did this on purpose. I

picked an option that's not a

traditional Friday. And this bid-ask

spread is terrible. I mean, it's trash.

This is a trash, literally, bid-ask

spread because look how wide it is. So,

if I want to trade this, it's going to

be very difficult. Plus, look at the

volume, it's zero. Like, I mean,

literally zero. Open interest zero.

Like, no one's ever traded this option

before, so I mean, this is a terrible

option. So, you know what? I am going to

go for my traditional strategy of what I

usually do and I'm going to go for July

17. Now, if I expand this $200 put

option right here, the delta is 0.32,

which is great. That's kind of where I

want it to be at with an implied

volatility of right around 40. So, you

can see that this is, you know, fairly

high volatility, not super high and it's

not as high as Palantir, but, you know,

it's over 30 and that's kind of in that

kind of, you know, medium range. I would

call it medium range. So, I I like this.

I like this a lot. Open interest is is

bonkers. I mean, this is insane. It's

almost 100,000 open interest. Very, very

liquid option. You can tell, actually,

by the bid-ask spread. I mean, the

bid-ask spread is amazing. So, I'm going

to go ahead. I'm going to sell this put

option here at 200. I'm going to execute

on this myself, personally. So, I'm

going to click continue here. Now, I'm

going to go for five contracts myself.

I'm comfortable with five contracts.

That would give me a total risk of

100,000. Again, remember the way I

explained it was that, you know, this is

the risk if the stock goes down to zero,

but really it's more so how much

capital and collateral that you need,

okay? So, I'm going to go for a bid ask

spread here of 610. So, let me try 615,

okay? I'm going to try to execute this

trade at 615. And Robinhood is telling

me that it has a medium fill likelihood.

So, let's see what happens here. I'm

going to go to review this order. And

I'm going to uh submit this order and

hopefully I get filled. Um I probably

won't get filled because you can see how

the bid ask spread just changed to 605

615. Now, to save time in this video, uh

instead of playing around with it, I'm

going to go for the lower end of the

range. I'm going to go for 6.05 right

now just so I can get this position

filled and kind of wrap up and tell you

the way I think about managing this

trade from here. So, now I have placed

it at 605 and I actually got assigned

here. Perfect. So, I got filled. Excuse

me. The correct terminology would be

filled not assigned. Assigned is when

the option's in the money and expires in

the money and then you get assigned.

Here, I'm getting filled, okay? So,

Nvidia short put filled, okay? Contracts

five, estimated total credit I got

$3,059.

Now, this would be about for the month,

okay? So, I just collected this amount

of income personally. And um you know,

this is not enough to like retire or

anything like that. But this certainly

adds up, you know, if you're selling put

options on say Nvidia or in Palantir and

and other high quality companies that

you that you like personally, right? You

can do your own research. And I'm just

trying to show you here how selling puts

works, the the strategy behind it. Then

this can be really great. Now, in terms

of managing this strategy, selling puts

is one of the easiest strategies to

manage because if you really want to own

the stock, then you don't need to close

out this put. Now, there is things that

you can do. You can close out the uh put

option sooner if it's down half the

amount. So, if you sold it for $6 and

now it's worth $9 and you know, it it

went against you and you don't want to

own the shares, you can close it. But in

my opinion, if you're looking to use the

strategy as a way to generate income and

you like the stocks that you're selling

puts on, then I would uh simply not

manage the strategy, and I would look to

get assigned if the option goes into the

money. So, both Palantir and Nvidia are

two stocks that I'm trading right now. I

think they're much more reasonably

valued than SpaceX. Palantir

specifically because their government

and commercial sector is growing

significantly, very fast, and their P/E

ratio is going to drop quickly as well,

and I think that their P/E ratio is

going to become very reasonable for many

investors, and it might actually become

a value stock in the longer term, and

they're certainly going to grow into

that. They have not had the best

performance over the last 1 year, which

makes me even more bullish on them

because Palantir is a great company that

investors are not really loving too much

at the moment. Now, Nvidia, reason I

like it so much is because it's clearly

one of the best AI stocks in the entire

universe of AI stocks. They're the

leader, they're the the biggest company

in the world, and I still think Nvidia

has a lot of room to grow. So, instead

of, you know, chasing hype or looking

at, you know, the stocks that are just

very popular or the YouTubers are

pushing or, you know, the the next

whatever multi-bagger stock, those can

be great as a small portion of the

portfolio, but the the bigger chunk of

your portfolio, I I I mean, personally,

I love something like an Nvidia. I feel

very comfortable with it. So, my

management strategy here would just to

simply open these contracts, and now

kind of wait and see, and take a more

passive approach. So, if you want to

learn more about selling put options, I

have a free course here on YouTube. I'm

going to put up on the screen. And also,

if you'd like to see all the sell puts

that I do live and get all my trades,

I'd love to have you in my Discord

community. My community is fantastic. We

have over 1,000 members, and I do live

updates. We have a great community which

talks about different strategies,

managing different trades, and mainly

about option trading. So, if option

trading is something that you want to

take seriously, then I'd love to be your

coach. Go ahead and check out the first

link in the description, and let's learn

and grow together. Thanks for watching.