Readers, you know I was in Boston last weekend, and I was driving home on Monday. Well, before I left my hotel I placed an order to buy 100 shares of Palantir (PLTR) at $25.95. When I was getting ready to leave the stock was teetering between $26.10 and $26. As I was packing up my computer I decided to place the order at $25.95 figuring it might fluctuate down to that point. You really shouldn’t play with pennies but I figured I wanted the stock for a Grasshopper trade so every little bit helps.
It turned out that while I was driving I was filled on that order. I didn’t have a good internet connection while driving so I didn’t notice I was filled.
The next day, on Tuesday, I had so much work to do I still didn’t notice this trade exception. When I finally noticed I owned the extra 100 shares of PLTR I forgot to report the trade. Below is my trade notification.
The stock moved below my buy-in price and I never got to make my Grasshopper Covered Call trade this week.
Today the stock is up. With the stock at $27.80 I felt the stock won’t hold that level so I decided to sell the elusive 1 contract trade I wanted to make since I placed the order to buy the stock in my hotel room.
This morning I placed an order to sell 1 PLTR 1/15/21 $28 Call for a premium 50¢. Notice the Expiration Date, It’s today!
Below in the order form for the stock buy and the selling of the Call.
1/11/21 – Buy 100 Shares PLTR @ $25.95
1/15/21 – Sell to Open 1 PLTR 1/15/21 $28.00 C @ 51¢ (+$51)
This is a Covered Call on a stock I like so the trade gets a Risk Factor 1.
This option is a 1 day trade and I received a premium of 1.9%. Since I felt the stock won’t hold the high of the day, I doubt I’ll get assigned on these shares. We’ll have to watch and see. The option expires today at the close.
This is a nice 1 day Grasshopper trade.
Successful trading,
Steve
The Options Coach