Sold a 20 Contract Call With PLTR
I own 2000 shares of Palantir at $28.40. This week I sold a $28.50 Call against these shares and received a 80¢ premium. When making this trade I made a mistake. I wanted to sell 20 contracts but when I filled in the order I entered 10 contracts. I was filled on that order quickly but soon after the stock dropped to the point I couldn’t get the other 10 contracts sold. As of this morning I still only have a 10 contract Call sold against my 2000 shares.
This morning the stock is up. However, it’s not up to the point that I’ll get assigned at $28.50. Since I feel my 10 contract Call will expire without assignment I just sold a Call for next week.
This time I did it correctly. I sold 20 1/29/21 $28.50 Calls for a premium of $1 for $2000.
Sell to Open 20 PLTR 1/29/21 $28.50 C @ $1.00 (+$2000)
After the close today, and the 10 contract Call expires, this new 20 contract Call will be a Risk Factor 1. At the moment I have the 10 contract Call expiring today and the new 20 contract Call expiring next week. After today I’ll own 2000 shares and have a 20 contract Call.
As I write PLTR is at $26.95. I have a 1 contract $27 Grasshopper Covered Call to expire today. If I get assigned this deal will be over. If the stock backs off and I don’t get assigned, I might sell another 1 contract Call at the close today. Later today I’ll let you know what I’m thinking.
Successful trading,
Steve
The Options Coach