Selling simple PLTR Call Options for Long Term Sustainable Income!
Task 1 - Tool and Objective Selection
My attention is directed towards Palantir Technologies Inc. ($PLTR.US). I have opted to monitor the Call option for Palantir, with an expiration date of December 19, 2025, and a strike price of $200. This decision is predicated on Palantir's recent announcement of robust Q3 earnings, characterized by strong revenue and Earnings Per Share (EPS). However, the market exhibits divergent expectations for Q4, coupled with ongoing debates regarding valuation, which may contribute to short-term stock price volatility.
Selling this medium/long call option allows for collecting a relatively high premium, capitalizing on the opportunity presented by rising short-term volatility.
Task 2 - Outline Your Strategy and Objectives
My strategy involves selling PLTR call options with a strike price of $200, set to expire on December 19, 2025, subsequent to the release of the earnings report in November 2025.
Should the stock price remain below the strike price, the option will expire without value, allowing me to retain the entire premium. Furthermore, even if the stock price surpasses the strike price, I am prepared to sell my PLTR shares at a price exceeding my cost basis which is below $100 and consistent with my long-term bullish investment thesis of Rinse & Repeat.
My strategy involves selling PLTR call options with a strike price of $200, set to expire on December 19, 2025, subsequent to the release of the earnings report in November 2025.
Should the stock price remain below the strike price, the option will expire without value, allowing me to retain the entire premium. Furthermore, even if the stock price surpasses the strike price, I am prepared to sell my PLTR shares at a price exceeding my cost basis which is below $100 and consistent with my long-term bullish investment thesis of Rinse & Repeat.
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