Selling the $75 put option on Robinhood with a premium of $5.40 is considered an attractive entry point, making the effective cost basis $69.50, which the creator believes is a great price to own the stock.
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Market Down? Don't Buy the Dip. Do this instead.
Invest with HenryMar 15, 2026
The creator discusses a strategy of selling put options as an alternative to buying the dip, especially during volatile market conditions. This strategy allows investors to collect premium while setting a desired entry price for stocks they wish to own, effectively getting a discount and being paid for the risk. The video highlights examples with Nvidia, Palantir, Robinhood, and Google, emphasizing the importance of selling puts on high-conviction companies and managing risk through strike price selection and delta.
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Tickers discussed in this post
The creator has a deep in-the-money put option on Palantir with a 91% delta, indicating an expected assignment, which is viewed positively due to belief in the company's long-term potential.
Selling a put option on Nvidia at a $165 strike price is presented as a better entry strategy than buying the stock at $171, as it provides a cushion and premium collection.