Earlier I sold 10 $18.50 Naked Calls of Palantir. The stock is moving today on 2 huge investors moving in. The investors are George Soros and Cathie Wood. The RSI is very high but it’s been high since it’s IPO about a month ago. I decided to cover the 10 Naked Contracts with the buying of 1000 shares, and I also added another 1000 shares to sell another 10 covered Call.
Earlier I sold 10 11/20/20 $18.50 Calls for 35¢, and I just sold more of the same Call for 75¢. I now own 2000 shares at $18 and own 20 contracts of the 11/20/20 $18.50 Calls with the total premium of 55¢ for $1100.
This is the way the combined positions will be listed on the “My Positions” page:
Buy 2000 Shares of PLTR @ $18.00
Sell to Open 20 PLTR 11/20/20 $18.50 C @ 55¢ (+$1100)
Any questions send me an email.
Successful trading,
Steve
The Options Coach