Filled on 2 Trades With Palantir
For those following my Palantir (PLTR) saga, it is winding down.
As a recap, I bought 4000 shares of PLTR at $18.47 and sold 40 contracts of the $19 Call. These Calls expired this past Friday with the stock at $27.66, $8.66 In-the-Money. As you know I am completely perplexed as to why I was assigned on only 17 of the 40 contracts. I was given the gift of not getting assigned on 2300 shares of the stock well In-the-Money.
Yesterday morning, with the shares in my account and moving up, Citron Research tweeted that they were shorting the stock. Citron Research is an investment firm with a very popular newsletter that reports when they think a stock will go down, and they are famous for their short positions on the stock they write about. They tweeted that PLTR is too high and will be down to $20 by the end of 2020.They also reported that they were shorting the stock. Well, talk about raining on my parade! The stock immediately started down. Yesterday morning I had so much I was working on, and the stock was falling fast, I couldn’t even get out. The stock has moved up and down since and today the stock is down.
I was left with 2300 shares as a result of not getting assigned. Yesterday I sold 300 of the shares as the stock was moving down. Today I sold the remaining 2000 shares. I figured why watch my good fortune evaporate away. I bought the shares at $18.47 and I just jumped out at $25.30.
11/20/20 – Buy 2000 Shares PLTR @ $18.47
12/1/20 – Sell 2000 Shares PLTR @ $25.30
Profit +$13,660
I still own 2000 shares that are involved in a Covered Call. These shares I plan on holding thru the “Citron” Storm. This is a very good stock and I know it will be back up very soon. As far as the shares I just sold, I figured let me lock in a nice profit on stock I really should not own. Getting out of these shares is gonna give another huge week.
The good news is this Palantir saga is over. All shares involved have been sold.
The other 2000 shares I own of Palantir are in a Covered Call. I bought the shares at $28.40 and sold a $29 Call to expire this Friday. With the stock I decided to sell another Call. With the stock down I don’t think I’ll get assigned at $29 this Friday. In anticipation of still owning the shares after Friday I sold another 20 contract Call to expire next week. I sold 20 PLTR 12/11/20 $29 Calls for a premium of $1.30 for $2600. This is a
As a reminder, the call I sold expiring Friday I received a premium of $5600. It’s nice to have a low priced stock for a cash cow.
Sell to Open 20 PLTR 12/11/20 $29.00 C @ $1.30 (+$2600)
Let me repeat one thing. Me not getting assigned on the 2300 shares that closed In-the-Money is an anomaly, and extremely rare. I’ve never seen it before in 30 years and believe me you will never see it again. So please do not get into Covered Calls thinking stocks closing In-the-Money will not get assigned. They will get assigned!
Successful trading,
Steve
The Options Coach