To The Moon

How I Made $200 in 10 Days with Palantir Stock

Ten days ago, I decided to seize an opportunity with Palantir Technologies (PLTR). At the time, the stock was trading at $59, and based on my technical and market analysis, I believed there was potential to earn not just from the stock itself but also by leveraging an options strategy. Here’s how I made $200 in just 10 days.

The Initial Purchase

I bought 100 shares of Palantir at $59, amounting to a $5,900 investment. Given my confidence in Palantir’s momentum, I wanted to boost my returns without holding the stock for an extended period. Selling covered calls was my chosen strategy, as it provides immediate premium income while giving me the chance to capitalize on short-term stock movements.

Selling the Covered Call

Immediately after purchasing the shares, I sold a call option with a $60 strike price and collected a $1 premium per share. This premium netted me $100 upfront ($1 x 100 shares). The option was set to expire in 10 days, a time frame that suited my strategy of capturing short-term profits.

What Happened Next

Palantir’s stock price steadily climbed during the 10-day period, eventually surpassing the $60 strike price. Yesterday, the option was exercised, and my shares were called away at $60 per share. Here’s how the math worked out:

• Stock Sale Profit: I sold the shares for $60 each, making a $1 per share gain on the purchase price. For 100 shares, this translated to $100.

• Option Premium: I had already earned $1 per share from selling the call, which added another $100.

In total, I pocketed $200 ($100 from the stock sale and $100 from the premium) in just 10 days.

Why This Worked

This strategy worked because Palantir’s price movement aligned perfectly with my expectations. The call option allowed me to secure premium income while capping my risk. Even if the stock hadn’t risen above $60, I would have kept the $1 premium, effectively lowering my cost basis to $58 per share.

The Takeaway

This trade is a great example of how combining stocks and options can create powerful opportunities for short-term gains. Selling covered calls is not only a way to generate passive income but also a hedge against market fluctuations. In this case, my $200 gain in 10 days represents a 3.39% return, an excellent result for such a short period.