To The Moon

$PLTR 20261120 180.0 CALL$ 

🐱 Why I Sell Covered Calls on PLTR, NVDA and Netflix – Turning My Shares into Regular Income

The stock market is not just about buying shares and waiting for prices to go up. I believe there is another way to make my portfolio work harder: selling covered call options on shares I already own.

My strategy is simple. Instead of letting my stocks sit idle in my portfolio, I sell call options to collect premiums. This allows me to generate additional income while continuing to participate in potential stock price appreciation.

Three companies I like using this strategy on are Palantir (PLTR), Nvidia (NVDA) and Netflix (NFLX).

I choose these companies because they operate in different areas of the technology and entertainment industries, have strong business stories, and offer opportunities for options trading.

I am not simply selling calls because I want to get rid of my shares. I am selling calls because I want to earn additional income from stocks I am prepared to hold, while accepting that I may have to sell some shares if the market price rises above my strike price.

1️⃣ Why am I making this trade now?

My PLTR covered call is based on the November 20, 2026 expiry with a $180 strike price.

The idea is to collect option premiums while holding my existing PLTR shares. If the share price stays below $180 until expiry, I can potentially keep the shares and the premium collected, subject to the option’s final settlement and any early assignment.

If PLTR rises above $180, I may have to sell my shares at the agreed strike price. That is the trade-off I am willing to accept when selling covered calls.

I like this strategy because I can generate income without having to predict every short-term movement in the market.

2️⃣ Why do I like Palantir (PLTR)?

Palantir is one of the interesting companies in the artificial intelligence industry.

Unlike companies that simply develop AI models, Palantir focuses on helping organisations use their data to make better decisions and improve their operations.

Its business includes several important platforms:

* Gotham: Used by government, defence and intelligence organisations.

* Foundry: Helps businesses organise and analyse large amounts of data.

* AIP: Allows organisations to integrate artificial intelligence into their operations.

* Apollo: Supports software deployment and management across different environments.

What makes Palantir interesting to me is that AI is becoming more than just a chatbot. Businesses want to use AI to improve productivity, automate processes and make better decisions.

This creates opportunities for companies like Palantir.

🐱 The latest earnings are particularly interesting.

Palantir reported third-quarter 2026 revenue of approximately US$2.31 billion, representing 96% year-on-year growth. Its US commercial revenue increased 148%, showing that demand is expanding beyond its traditional government business.

The company also raised its full-year revenue guidance to approximately US$8.53 billion. SEC +1

This is why I continue to pay attention to PLTR.

However, I also understand that a good company does not automatically mean its shares are cheap. Palantir has high growth expectations, and its share price can be extremely volatile.

For me, selling covered calls is one way to manage that volatility while generating additional income.

3️⃣ Why covered calls make sense for PLTR

PLTR can experience large price movements.

Sometimes the stock rallies strongly because of AI enthusiasm. At other times, investors take profits, especially when technology stocks experience a correction.

Instead of trying to sell at the perfect market peak, I can use covered calls to collect premiums.

For example, my current trade uses:

* Stock: PLTR

* Option: Covered call

* Strike price: US$180

* Expiration: November 20, 2026

I receive the option premium upfront.

There are two possible outcomes.

Scenario A: PLTR stays below US$180

If the option expires worthless, I keep my shares and the premium received. I can then consider selling another covered call.

Scenario B: PLTR rises above US$180

My shares may be called away at US$180. I keep the premium and receive US$180 per share for the shares assigned.

Of course, I give up any additional upside above US$180 on those shares.

That is why I must be comfortable selling at my chosen strike price.

I also need to remember that a covered call does not protect me from a major share price decline. The premium only provides a limited cushion.

4️⃣ Why I also sell covered calls on Nvidia (NVDA)

Nvidia is another company I like for covered call strategies.

Nvidia is a major beneficiary of the AI infrastructure boom. Its GPUs are essential for training and running advanced AI models.

The demand for computing power continues to create opportunities for Nvidia.

However, NVDA is also a stock that can move significantly in both directions.

When the stock rises sharply, investors sometimes become overly optimistic. When the market corrects, Nvidia can experience substantial selling pressure.

I use covered calls to turn some of that volatility into income.

For example, if I already own 100 Nvidia shares, I can sell one call option against those shares.

I collect the premium and wait.

If Nvidia remains below my strike price, I can potentially keep my shares and premium.

If Nvidia rises above my strike price, I may sell my shares at that price.

Sometimes I am happy to sell calls at strikes closer to the current share price when I want to generate more premium. Other times, I choose higher strikes when I want to leave more room for the stock to appreciate.

The important thing is that I do not sell a strike price simply because the premium looks attractive.

I must be comfortable with the possibility of selling my Nvidia shares at that price.

5️⃣ Why Netflix (NFLX) is another candidate

Netflix is different from Palantir and Nvidia.

It is an entertainment and streaming company with a global subscriber base.

I like Netflix because its business is not directly dependent on the same AI infrastructure spending cycle as Nvidia.

Netflix has several sources of business growth, including subscriptions, advertising and content monetisation.

The streaming industry is competitive, but Netflix has built a strong global platform.

I can use covered calls on Netflix in a similar way.

If I already own the shares, I can sell calls at a price where I am comfortable taking profits.

For example, if Netflix has rallied and I believe the stock may consolidate, I can consider selling an out-of-the-money call.

If the stock stays below the strike price, I collect the premium.

If Netflix rallies above the strike price, I may sell my shares and realise the stock gains together with the premium.

I particularly like having different companies in my covered call strategy because I am not relying on one stock alone to generate option income.

6️⃣ My three covered call candidates

Stock Why I like it Covered call approach

PLTR AI software and enterprise adoption Earn premiums while accepting a potential sale

NVDA AI chips and computing infrastructure Sell calls after strong rallies

NFLX Global streaming and advertising business Generate income from existing shares

I do not necessarily sell calls on all three at the same time. I look at their share prices, implied volatility, option premiums and upcoming events before deciding.

7️⃣ What is my plan from here?

My plan is to continue using covered calls as an income-generating strategy.

For PLTR, I will monitor the US$180 strike and the November 20 expiration. I will watch whether the share price approaches the strike and whether the original reason for holding the stock remains intact.

For NVDA, I will look for opportunities when the stock experiences a strong rally. I may sell calls above my desired exit price rather than chase the share price higher.

For Netflix, I will continue looking at the company’s growth prospects and use covered calls when the premium adequately compensates me for the upside I am giving away.

There are several things I need to monitor:

* The underlying share price.

* The premium received versus the risk of selling my shares.

* Implied volatility and changes in option prices.

* Earnings announcements and major company news.

* Whether I still want to own the shares.

I also need to remember that covered calls are not risk-free income. If the underlying stock falls sharply, the premium may not compensate for the decline. If the stock rallies dramatically, I may miss out on additional gains.

8️⃣ My conclusion: Let my shares work harder

I believe investing should not always be about buying shares and waiting.

If I already own quality companies such as PLTR, NVDA and Netflix, I can consider using options to generate another source of income.

My approach is to collect premiums, remain disciplined and choose strike prices where I am genuinely comfortable selling my shares.

I do not need every trade to deliver a massive return. Sometimes collecting smaller premiums consistently is more practical than constantly trying to predict the next big market move.

For me, covered calls are a way to make my existing portfolio more productive.

My philosophy is simple: I want to own good businesses, collect premiums when the opportunity is attractive, and remain flexible when the market changes. 🐱

Options risk reminder: One standard covered call generally requires 100 shares per contract. The US$180 PLTR strike is not necessarily your breakeven price. Your actual outcome depends on your share cost, option premium, fees and assignment price.

@TigerStars @AI_FocusedTrader @Shernice軒嬣 2000 @Daily_Discussion 

$Palantir(PLTR)$  

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