Defending a Palantir Position with Smart Adjustments: How to Stay Profitable Even When Stocks Drop

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Markets can turn quickly — and when they do, disciplined traders know how to respond. In this post, we’ll break down how Mark Yegge defended his position in Palantir Technologies (PLTR) after the stock unexpectedly dropped $8 in one day — all while maintaining control, reducing risk, and preserving income potential.

If you've ever wondered how professional traders handle sudden losses, read on.

What Went Wrong (and What Went Right)

Earlier in the day, Mark had opened a position in Palantir by selling 91 strike calls and expected to make about $9,000 in premium income for the week. But markets had other plans.

By midday, Palantir dropped over $7, and Mark’s position was out of the money, meaning it had lost its intrinsic protection. However, thanks to his smart option strategy, the damage was controlled.

How He Defended the Trade

Step 1: Identify the Problem

Palantir dropped below the 91 strike.
No more intrinsic cushion.
Risk of further downside.

Step 2: Execute a “Roll Down”

Mark bought back the original 91 calls (at a small loss) and rolled down to 87 strike calls expiring May 2nd, gaining:

$4 of additional downside protection
A new $4.44 premium (almost equal to the original)

Result: The trade is still intact, with just a longer holding period.

Key Takeaways: Smart Risk Management

Stick to the Plan:
When your strike is breached, don’t hope. Act. Mark followed his trading rule: "If the stock drops below the strike, defend the position."
Roll Down, Not Out (Too Far):
Instead of panicking or closing the trade, rolling to a lower strike resets the position with better downside protection.
Time vs. Reward:
The initial plan was $9,000 in ~9 days. Now, it’s still $9,000 but in ~16 days. That’s still a solid return if the stock stays above 87.
Accept You're Not the Market:
Even seasoned traders admit they can't predict direction. What they can do is control the response.

“Call me a dummy, I don’t care. I stick to my trading plan,” Mark says — and that mindset is what keeps traders in the game.

FAQs

Q: If Palantir drops below 87 again, what happens?
Mark may have to roll down again. It’s not ideal, but it’s part of the strategy: defend, not predict.

Q: Why not close the position and take the loss?
Because there’s still premium to collect and still time for the position to recover or be adjusted profitably.

Q: Is this approach only for experts?
No — it’s based on rules and discipline, not prediction. Once you learn the framework, it’s a repeatable system.

Life-Improving Lessons From This Trade

Losses happen. Your response matters more than the event.
A structured system beats gut feelings.
Juice (premium) can buffer and even replace capital losses.
Rolling is not a failure — it's a powerful tool for staying alive in the trade.

Call to Action

If you want to learn how to trade like this — defending positions, managing risk, and generating weekly income — Mark’s Cash Flow Machine™ system might be for you.

Visit CashFlowMachine.io
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Conclusion

Mark didn’t predict Palantir’s drop — but he didn’t need to. With smart trade management, he adjusted the position, maintained premium income, and added downside protection.

Whether the market goes up or down, the goal is clear: stay in the trade, stay in control, and keep collecting the juice.

Defending a Palantir Position with Smart Adjustments: How to Stay Profitable Even When Stocks Drop

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