How I Earned 3% in Just 10 Days with PLTR
Last week Wednesday, I bought 100 shares of Palantir (PLTR) at $67.40 per share. This was a strategic move, and I decided to enhance my returns by selling a covered call at a strike price of $67, collecting a premium of $2.42 per share. 💼
The Strategy in Action
By selling the covered call, I immediately pocketed $242 for one contract (100 shares). This premium reduced my effective cost basis from $67.40 to $65.98 per share. It also gave me a chance to lock in profits if the stock stayed at or above $67 by expiration.
Fast forward to today, Friday, and the covered call expired in-the-money. My shares were called away at $67 per share, meaning I sold them for $6,700. Adding the premium I collected earlier, my total proceeds came to $6,942. 🤑
Breaking Down the Profit
Here’s how I calculated the gain:
• Total proceeds: $6,700 (share sale) + $242 (premium) = $6,942
• Initial cost: $6,740 (100 shares at $67.40 each)
• Net profit: $6,942 - $6,740 = $202
In just 10 days, I managed to earn a return of 3.00% on my initial investment.
My Reflection
This strategy combines the power of stock ownership with options trading. It’s a way I make my capital work harder, even in a short period. 📈 With careful planning and execution, opportunities like this are always worth exploring.
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