Thread by @wealthcoachmak

$PLTR Covered Call Update

A brief thread 🧵 on the ups and downs of $PLTR and all the maneuvering I had to do with my Call Option

Premium: $528
Risk: $9600

5.5% return in ~4 months

16.5% annualized return

#OptionsTrading #Optionselling

👇👇👇

Sold a 1/27 $PLTR $7.5C on Jan 9

12 contracts (1200 shares)

Premium added: $72

#OptionsTrading #Optionselling

👇👇👇

On Jan 27 I rolled over the $PLTR call

$PLTR was above $7.6 and I didn’t want to lose my shares

Rolled the call over by one week to:

- 2/3 $7.5C
- Premium: $216

On Feb 3 $PLTR was at $8.4

$0.9 above my strike price so I had to keep rolling over to protect my shares

I rolled over the call by 1 month this time:

- 3/3 $7.5C
- Premium: $240

Same strike price

I was remaining patient since I didn’t think $PLTR was going to run away

On Feb 15 $PLTR was above $10

$2.5 above my strike price

$PLTR had a big run up but in this macro environment I didn’t expect it to run away

Eventually it began to come down a bit

I became I’m patient and rolled over to:

- 5/19 $8C for $0

$0.5 higher Strike Price

I moved the call out on Feb 15 from 3/3 expiry to 5/19

I bought more time

On March 10 $PLTR was $7.35

So $PLTR did come down

But I was impatient and had rolled my call 3 months out

Had I not done done anything to the March 3 call I could have been free and clear by March 10

Today $PLTR is at $7.78 and below my strike price

But I still have 3 more trading weeks to go

Premiums collected in less than 4 months: $528

Risk: $9600

5.5% return in ~4 months

16.5% annualized return

On shares that I am holding for long term anyway