To The Moon

In thi$Palantir Technologies Inc.(PLTR)$  

Palantir (PLTR) trade, you executed multiple rounds of selling and buying call options to generate premiums. Initially, you sold a PLTR call option with a strike price of $60 for a premium of $1.49 and later bought it back at $1.46, capturing a small profit of $0.03 per share (or $3 for 100 shares). Following this, you repeated a similar strategy multiple times with calls at strike prices of $60 and $61, buying and selling them at different prices to earn incremental profits.

The goal here was to take advantage of fluctuations in option prices by selling at higher premiums and buying back at lower ones. This “buy low, sell high” approach for option premiums is known as scalping and allows you to accumulate small profits with each cycle. In total, your earnings from each round depend on the difference between the selling and buying prices. Adding up each transaction’s net profit gives you the cumulative gain from this series of trades.

A covered call strategy involves selling a call option on shares you already own—in this case, PLTR shares. Since you own the underlying shares, if the price rises above the strike price and the option is exercised, you can deliver the shares, limiting risk. Your risk in this trade is minimal, given that PLTR was trading at around $59.70, close to your purchase price. If PLTR exceeds $60 or $61, you risk having the shares called away, capping your upside. The reward consists of the cumulative premiums received from selling calls, which add to your overall return on the stock position.

In summary, the covered call strategy allowed you to generate income on your PLTR shares through repeated call sales, while keeping downside risk limited due to owning the underlying shares. By repeating this approach, you’ve leveraged market volatility to enhance your profits on PLTR beyond just holding the shares.

@MillionaireTiger 

@Daily_Discussion 

@CaptainTiger 

@TigerStars