My PLTR Trade: $318 A Profitable 7 days covered call Strategy
My PLTR Trade: A Profitable 7 days Strategy
Last Friday, when Palantir Technologies (PLTR) was trading between $71 and $76.12, I executed a well-thought-out trade. After careful analysis, I estimated that the fair value for PLTR over the following seven days should range between $74 and $79. With this in mind, I initiated the following strategy$Palantir Technologies Inc.(PLTR)$
1. Stock Purchase: I bought 100 shares of PLTR at $76.12.
2. Selling an OTM Call: Simultaneously, I sold an out-of-the-money call option with a $77 strike price, netting a premium of $2.30 per share.
This setup gave me a clear potential profit:
• Upside Potential: If PLTR hits $77 by Friday, I’ll realize a gain of $0.88 per share ($77 - $76.12).
• Premium Collected: The $2.30 premium collected adds an immediate return to my trade.
Monday Update: Looking Good!
Today is Monday, and this strategy is already looking promising. Assuming PLTR closes at $77 by expiry, my total potential profit becomes:
• Stock Gain: $0.88 per share from stock price appreciation.
• Option Premium: $2.30 per share.
Together, that’s a potential return of $3.18 per share, or 4.2% in just four days!
My Disclaimer
This article reflects my personal opinions and trading strategies. It is not financial advice. Please do your own research or consult a financial advisor before making any investment decisions. Trading options involves risk, and past performance does not guarantee future results.
@MillionaireTiger @TigerTradingNotes @TigerStars @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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