To The Moon

$PLTR 20271217 300.0 CALL$ 

🐱 PLTR Protective Covered Call – How I Earn Premium While Preparing to Sell 100 Shares

I think this strategy makes sense because I currently hold 300 shares of Palantir (PLTR) and I am comfortable selling 100 shares at a higher price.

Instead of simply waiting for PLTR to rise, I can sell a covered call to collect option premium while keeping the other 200 shares for potential long-term growth.

I am not trying to sell all my PLTR shares. I am only prepared to let go of one-third of my position.

1️⃣ Why am I making this trade now?

My thinking is straightforward:

* I currently own 300 PLTR shares.

* I want to continue holding 200 shares for long-term appreciation.

* I don’t mind selling 100 shares if PLTR reaches my target price.

* I can collect option premium while waiting.

This is a covered call strategy because I already own the underlying shares.

For every 100 shares I own, I can cover one standard call option contract.

With 300 shares, I technically have enough shares to cover three contracts, but I only need to sell one call contract if my intention is to sell just 100 shares.

2️⃣ How does my $300 covered call work?

From my screenshot, the contract appears to be:

* Stock: PLTR

* Expiry: 17 December 2027

* Strike price: US$300

* Option: Call

* Position: Short call

If I sell one contract, here is what happens:

PLTR at expiry My outcome

Below $300 I keep all 300 shares and the premium

At $300 Assignment depends on settlement and exercise

Above $300 My 100 shares may be sold at $300

Rises to $400 I still sell at $300, missing the additional upside

Let’s say I receive US$637.20 in premium.

That represents US$637.20 collected for agreeing to sell 100 shares at US$300, subject to assignment.

My effective selling proceeds would be:

US$30,000 + US$637.20 = US$30,637.20

This excludes fees and taxes.

3️⃣ Why do I like this strategy?

A. I monetise shares I already own

Instead of simply holding 300 shares and waiting, I put 100 shares to work through options.

B. I have a predetermined exit price

If PLTR reaches US$300 and my shares are assigned, I am happy to sell 100 shares because that was already my intended exit price.

C. I retain 200 shares for future growth

This is the important part. Even if 100 shares are called away, I still participate in PLTR’s future performance with the remaining 200 shares.

4️⃣ What are my risks?

I wouldn’t call this a complete protective hedge.

The premium provides a small cushion if PLTR falls, but it cannot protect me against a substantial decline.

There is also an opportunity cost. If PLTR suddenly rallies to US$400, I may have to sell my 100 shares at US$300.

Another consideration is the long expiry. December 2027 is a relatively long time to cap the upside on those 100 shares. I would compare it with shorter-dated covered calls before committing.

5️⃣ What’s my plan from here?

My approach would be:

1. Keep all 300 PLTR shares initially.

2. Sell only one covered call contract.

3. Monitor the option value and PLTR’s price movement.

4. If PLTR rallies strongly, decide whether to accept assignment or buy back the call.

5. If assigned, retain my remaining 200 shares.

🐱 My conclusion

I don’t necessarily need to sell all my PLTR shares to take profits.

With 300 shares, I can use one covered call to generate additional income while establishing an exit target for 100 shares.

This is particularly useful when I am bullish on PLTR over the longer term but also willing to take some profits at a higher valuation.

I am not selling the call because I want PLTR to crash. I am selling the call because I am happy to receive premium today and potentially sell 100 shares at US$300 tomorrow.

That is my portfolio management strategy, not simply speculation.

@TigerStars @AI_FocusedTrader @Shernice軒嬣 2000