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 

@Daily_Discussion 

@MillionaireTiger @TigerTradingNotes @TigerStars @CaptainTiger