Reflecting on My $PLTR Assignment: Turning a Panic into Fixed Income 💡
Nine months ago, I sold a call option on $PLTR in a panicked move, earning $1 per contract—or $100 for 100 shares. While this seemed like a modest premium at the time, I now recognize the strategic potential it offered, even if it led to my shares being called away. With a cost basis of $2,400, the $100 premium translates to a near 4% return over nine months.
When analyzed through a fixed-income lens, this trade becomes more rewarding. A 4% return on a low-risk covered call strategy is comparable to returns on certain bonds or dividend-paying stocks but with added flexibility. Treating this assignment as part of a fixed-income approach shifts the perspective from regret to appreciation of steady, incremental gains. Selling covered calls on shares I already owned helped me generate consistent cash flow while maintaining exposure to market upside.
The initial panic that led to the call sale was a lesson in managing emotions during market volatility. By accepting assignment, I reinforced the value of staying disciplined and treating options strategies as tools for enhancing returns on existing positions. While the premium may seem small in absolute terms, it aligns with my broader strategy of compounding small, reliable gains into meaningful portfolio growth over time.
This experience reaffirms my belief in the power of covered calls as a way to optimize returns on long-term holdings. Even under imperfect circumstances, they can serve as a defensive mechanism while generating income. Looking forward, I plan to refine my timing and strike selection to maximize premiums while minimizing the likelihood of assignment unless it fits my broader goals.
| Side | Price | Realized P&L |
|---|---|---|
| Buy Close | 0.00 | +100.00% Closed |
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