To The Moon

Profit from Palantir (PLTR) Covered Call Assignment – A Smart Options Play

Successful Covered Call Execution

This week, I successfully closed out a covered call position on Palantir (PLTR), generating a decent profit through a well-timed options strategy. My sell call was assigned at a strike price of $77, with an upfront premium of $1.55 per contract. Since my cost basis for PLTR was around $78 per share, this meant I still locked in a net profit despite the assignment.

Breaking Down the Profit Calculation

For each contract, I effectively earned $0.55 per share:

• Strike Price: $77

• Premium Collected: $1.55

• Cost Basis: $78

• Net Profit per Share: $0.55

Since I had two contracts, my total profit for this trade amounted to $110 ($55 per contract × 2 contracts). This is a great return for a relatively short-term covered call strategy, reinforcing why I continue to use options to generate income from my holdings.

The Power of Covered Calls

Covered calls are a fantastic way to generate additional income from stocks I already own. Even though my shares were called away, I still profited from the premiums collected. This helps me reduce my cost basis over time, allowing me to re-enter the stock at a better price if I choose to do so.

In this case, PLTR’s price movement worked in my favor, and instead of holding onto the stock with potential downside risk, I was able to capitalize on the premium and assignment. With this strategy, I make money regardless of whether the stock moves up or stays neutral.

Looking Ahead – What’s Next?

With my PLTR shares assigned, I now have fresh capital to redeploy into another position. I could choose to buy back PLTR at a lower price, enter a new options trade, or look for other high-quality stocks where I can implement a similar covered call strategy. Given the market’s current conditions, I will assess my next move carefully, keeping an eye on volatility and technical indicators.

Final Thoughts

This trade is another example of how options can be used strategically to enhance portfolio returns. While assignment means giving up shares, it also means locking in profits while maintaining flexibility for future trades. I’ll continue using covered calls as part of my portfolio strategy to generate consistent income while managing risk effectively.

Disclaimer

This article is purely for personal record-keeping and educational purposes. It is not financial advice. Always do your own research and consult with a financial professional before making investment decisions.@Daily_Discussion @MillionaireTiger @TigerTradingNotes $PLTR 20250103 77.0 CALL$