Hi, I'm newbie on Option, I just have questions. If I did a Sell Put of PLTR at Strike Price of 10USD, Expiration will be on April 1, 2021. Now the PLTR is already at 13.39 USD, 1) What will be the best move for me? Just wait for it to expire? Any other better things I can do? 2) If I'll wait to expire, will I get extra since it was increased from 10 to 13.39 usd aside from Premium pay? Thanks.
If you don't have anything else to do with the capital, then just let it expire. If you have another trade that you cannot do without freeing up some capital, then yes, buy the put back and do the other trade.
1) If you don't believe the stock price of PLTR is going to go down to be lower than $10 strike price until and including April 1, 2021, the best thing to do is just let the put option expire. That way you can collect the entire premium or the price that you sold the put for. 2) No. You will just get the premium and that's it. Any increase in the stock price higher than the strike price on the option is off-limit to you since you sold the put option. That's for people who have bought the call option. Strongly suggest you read more on options before trading them.
The maximum gain for you if it expires worthless is the premium you got for selling it. Price fluctuations of the stock itself does not increase your gains. So, how much monies in premium did you get for selling the PLTR $10 Put? That is the only thing that matters.
Depends what your strategy is. Only collecting the premium (non-acquisitive) or looking to buy the stock at discount (acquisitive).
The most you can make on the trade at any time - no matter how high the price of PLTR - is the premium at the time you entered the trade. However, your potential for loss is substantial if PLTR falls. So your decision now is whether to take an early profit, or hold until expiration with the possibility you could take a loss of the price of PLTR drops prior to expiration. And you should not be shorting options until you have a clear understanding of the risks, which can be considerable.
I generally sell to close when profit is at 75 or 80%.. in your case it will very likely expire otm and you will get 100% profit.
My advice to you is to stop selling options. You should know the answers to your questions, and much more, before executing. Your query sounds like "I have no plan, I have no idea, but I just sold a put... what shall I do now?"