To The Moon

Sold a call higher as I adjusted 

With buying at 76.12 and premium of 2.30 my max profit is around $342

Analyzing My $PLTR Trade: A Calculated Adjustment for Profit 💹

In my recent trading move, I opened a $PLTR 20241227 77.0 CALL, buying the option at $76.12 while collecting a $2.30 premium by selling a higher call. This adjustment aligns with my strategy of balancing risk and maximizing gains. With just six days left to expiry and today being the 21st, my position is poised to deliver an attractive maximum profit of $342.

This setup hinges on careful analysis of Palantir’s price movement and market sentiment. By choosing a $77.00 strike price, I positioned myself just slightly above the current trading price to capitalize on the upside without venturing too far into speculative territory. Selling a higher call simultaneously provided a premium cushion, effectively reducing my net cost. This calculated move not only lowers my breakeven point but also locks in potential profits, ensuring my portfolio remains balanced and hedged against downside risks.

The $342 maximum profit is derived from the premium collected plus the intrinsic value at expiry, assuming PLTR ends at or above the strike price. By managing this trade with discipline, I’ve mitigated risk while keeping potential returns intact. The short timeline to expiry means time decay is working in my favor for the sold call, compressing its value and adding to my gains.

This trade demonstrates the importance of adjustments in options trading. By adapting to market conditions, I’ve turned a straightforward call buy into a sophisticated profit-maximizing strategy. While the trade isn’t without risks—like a sudden PLTR price drop—I’ve structured it to stay within my comfort zone and preserve my financial objectives. As the expiry date nears, I’m optimistic about seeing this position through to its full potential.