Sold Palantir Call, Bought Tesla LEAPS

I had physical therapy this afternoon on my surgically repaired shoulder. Before I left my home I entered 3 trade orders. I was filled on 2. I placed orders to sell Calls against my Palantir (PLTR) and Zoom (ZM) shares. I was filled on PLTR. I also placed an order to buy 1 Tesla Call to expire next January. I was filled on that order. I’m still waiting on my ZM order.

On 11/25 I bought 2000 shares of PLTR at $28.40, and have been selling Calls since. Yesterday I sold 20 12/18/20 $29 Calls for a premium of 18¢ ($360). Today PLTR is down and I won’t get assigned on this Call. Instead of waiting until Monday I sold my next Call today. In sticking to my strategy of moving any more profit to next year, I sold 20 PLTR1/15/21 $29 Calls for a premium of $2.15 for $4300. This is a stupendous premium for a $26 stock. I could have moved my Strike Price a little higher but I decided to stick with the $29 Call, and the higher premium, because PLTR received a downgrade from Credit Suisse today. I decided to be happy with the $4300 premium and a better chance of being assigned.

Sell to Open 20 PLTR 1/15/20 $29.00 C @ $2.15 (+$4300)

This position will expire in a month and I received a Return on Investment of 7.5%. This trade gets a Risk Factor 1.

Tesla was up today at the open. The stock enters the S&P 500 at the close today. The stock has been moving up a lot lately and I think it can get a pop next week entering the S&P.

Before I left to go to physical therapy the stock was pulling back. I decided to enter an order to buy 1 TSLA 1/21/22 $670 LEAPS. I entered a premium of $175. When I returned home I was filled.

Buy to Open 1 TSLA 1/21/22 $670.00 C @ $175.00 

As I write the stock is up about $15 from when I placed the order and the premium for my Call is up to $185. I could sell right now for a $1000 profit but I think I’ll wait until Monday. I hope this will not be a case of “buy the rumor, sell the news.” But if it is I still own the Call until next January. I feel pretty safe. This trade also gets a Risk Factor 1.

Let me know if you have any questions on LEAPS.

I’ll let you know if I’m filled on my Zoom trade.

Successful trading,

Steve

The Options Coach