Sold Calls on Palantir

I own 7000 shares of Palantir at different entrance prices. The stock is way down from where I bought in erasing a lot of my year’s profit in my account. I’m really not worried because I love the stock, and Goldman Sachs gave the company a big upgrade this week on a very positive guidance report.

This morning, with the stock at $27.90, I sold 70 $30 Calls to expire today. I do own the stock but I don’t want to get assigned at the $30 Strike price. The stock is up $2.75 on the day and I don’t think it will go up another $2 by close today. However, I gave myself a job to watch this position like a hawk until 4pm.

Sell to Open 70 PLTR 2/19/21 $30.00 C @ 25¢ (+$1750)

This trade gets a Risk Factor 4 because if I get assigned I’ll lose a lot on the stock sale.

I’ll be writing about my Palantir position this weekend. It’s a very large position but there is a good learning opportunity here. When trading options it’s not always a smooth highway. Many times you run into potholes and road hazards. We must learn how to navigate around to make a bad situation a winning one.

Successful trading,

Steve

The Options Coach