Closed My PLTR Position

This past Monday, Nov 11th, I bought 3 Call options on Palantir (PLTR). I bought 3 PLTR 12/27/24 $62 Calls for a premium of $4.50. The total cost for the 3 contracts was $1350. Today, with the stock up, I jumped out with a nice profit, I sold the 3 contracts for $5.85. This sale brought in $1755 for a profit of $405.

 

11/11/24 – Buy to Open 3 PLTR 12/27/24 $62.00 C @ $4.50 

11/15/24 – Sell to Close 3 PLTR 12/27/24 $62.00 C @ $5.85

Profit +$405

I bought this position with an Expiration Date about six weeks out. However, I sold the position in four days. My strategy is to take a profit when I’m happy with the return. Palantir stock continues to go up as I write but I don’t care. Buying options can be very dangerous if you get greedy. If the stock moved down, with Time Decay, the stock might not recover enough to get the profit back. When buying options it’s very important to understand Time Decay and how it eats up the premium with time.

I bought the position for $1350 and sold four days later for $1755 for a profit of $405. That is a Return on Investment (ROI) of +28.8%. This was a great trade and it would have been a good one for Grasshoppers.

Any questions on this trade send me an email.

 

Successful trading,

Steve

The Options Coach