Covered My Naked PLTR Call Option

Yesterday I reported that when doing Covered Calls I normally buy a stock first then sell the Call. When I was in the process of doing a Covered Call with Palantir (PLTR) the stock started moving down so I sold the call and I figured I would buy the stock with a lower price. It turned out that as soon as I was filled on my short Call the stock started moving up, and it moved above my Strike Price of $61. I watched closely so I could buy the stock if it went below my Strike but it never did and the day ended. This morning, with the market down, PLTR dropped below my Strike Price and I was filled on my order to buy the stock. I no longer have a Naked Call and I now have a Covered Call.

 

11/20/24 – Buy 200 shares PLTR @ $60.60

11/19/24 – Sell to Open 2 PLTR 11/22/24 $61.00 C @ $185.00 (+$370)

 

Successful trading,

Steve

The Options Coach