Covered Call With Palantir

I bought 100 shares of Palantir yesterday at $78.25 to do a Covered Call. I placed an order for a Call to expire Friday the 27th but I was not filled. Today the stock opened in the green and I was just filled. I sold 1 PLTR 12/27 $85 Call for a premium of $1.60.

12/23/24 – Buy 100 Shares PLTR @ $78.25

12/24/24 – Sell to Open 1 PLTR 12/27/24 $85.00 C @ $1.60

The $1.60 premium is a return of 2%. This would be a good Grasshopper Trade, although the stock is a little expensive for some Grasshoppers. The 100 shares cost me $7825. The premium is 2% but if I get assigned I’ll make $675 on the stock sale. The stock sale and premium will be a total of $835. With assignment my ROI will be 10.6% which is fantastic.

 

Successful trading,

Steve

The Options Coach