Making Money $90 with Covered Calls on Palantir (PLTR): A January Reflection
I have always believed that trading does not need to be flashy or complicated to be effective. Over time, I gravitated toward strategies that are repeatable, structured, and grounded in probability rather than prediction. One of those strategies is selling covered calls on stocks I genuinely believe in. Palantir Technologies (PLTR) is one of those stocks.
On 1 January, while many people were celebrating the new year, counting down with friends and thinking about resolutions, I was quietly managing my positions. That night, while attending a countdown event with CoinEye and my Tiger Brokers friend, the market gave me an unexpected but welcome gift. PLTR pulled back, volatility shifted, and I took the opportunity to close my covered calls for a profit. Earning about $90 on the first day of the year may not sound life-changing, but moments like these reinforce why I stick to this strategy.
This article is my reflection on how much I made, why closing the calls on 1 January mattered, how covered calls fit into my overall trading mindset, and why I remain bullish on Palantir—enough to shift my next sell call higher to 210.
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Understanding My PLTR Covered Call Trades
Before talking about profit, it’s important to explain what I actually did.
I own Palantir shares. Because I already hold the stock, I can sell call options against those shares. This is what makes the strategy a covered call. By selling a call, I give someone else the right (but not the obligation) to buy my shares at a certain price (the strike) before a certain date (expiration). In exchange, I collect a premium upfront.
From the trade records:
• I sold a PLTR call at the 185 strike expiring 16 January 2026 for $4.80
• Later, when the market pulled back, I bought it back at $4.00
• That alone represents a $0.80 gain per share, or $80 per contract (since one contract controls 100 shares)
I also executed a similar sequence with another call:
• I sold a PLTR call at the 190 strike expiring 23 January 2026 for $3.50
• I later bought it back at $3.40
That trade added another $10.
Altogether, these trades generated roughly $90 in realized profit, excluding commissions. The key detail here is timing. I did not wait until expiration. I did not try to squeeze every last cent out of the option. I simply took the profit when the market gave it to me.
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Why Closing on 1 January Was “Lucky” — But Also Logical
I described the trade as “lucky,” and to some extent, it was. The market fell on 1 January, which caused call option prices to drop. When the underlying stock price declines, call options generally lose value, especially if the move happens quickly.
However, luck only favors preparation.
I was already comfortable with the idea of closing early if:
1. The premium decayed faster than expected
2. The risk-reward no longer justified keeping the position open
3. I wanted flexibility to reposition
When PLTR dipped, the calls lost value, and I didn’t hesitate. I closed them. I locked in the profit. That decision freed up my mental bandwidth and allowed me to enjoy the countdown event instead of staring at charts.
Making $90 on the first day of the year, while celebrating with friends, reinforced something important: trading doesn’t have to dominate my life to be effective. Sometimes, the best trades are the quiet ones that work in the background.
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Why $90 Still Matters (Even If It Sounds Small)
Some people measure success only in big numbers. I don’t.
That $90 represents:
• Income generated without selling my shares
• Income generated without predicting market direction
• Income generated from time decay and volatility
If I can consistently make $80–$150 per cycle on a single stock I already own, that adds up over time. Over a year, repeating this process multiple times can meaningfully reduce my cost basis or supplement my portfolio returns.
More importantly, it reinforces discipline. I didn’t overtrade. I didn’t chase. I executed a plan and accepted what the market gave me.
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Why Covered Calls Fit My Trading Personality
I prefer strategies where:
• Risk is defined
• Decisions are mostly made upfront
• Emotion is minimized after entry
Covered calls tick all those boxes.
When I sell a call:
• I already know my maximum upside (premium + stock appreciation up to the strike)
• I already accept the possibility of having my shares called away
• I already receive cash immediately
This transforms my mindset. Instead of hoping for price movement, I focus on probability and consistency. Time becomes my ally. Every day that passes without a sharp rally works in my favor.
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Why I’m Still Bullish on Palantir (PLTR)
Closing a covered call does not mean I am bearish. In fact, I remain structurally bullish on Palantir. That’s exactly why I continue selling calls instead of selling the stock outright.
1. Palantir’s Position in AI and Data Analytics
Palantir is not just another software company. It sits at the intersection of:
• Government contracts
• Enterprise AI adoption
• Mission-critical data infrastructure
Its platforms—Gotham, Foundry, and AIP—are deeply embedded into how organizations make decisions. This creates high switching costs and long-term client relationships.
2. Profitability and Operating Leverage
Palantir has demonstrated improving margins and disciplined cost control. As revenue scales, operating leverage becomes more visible. This is the kind of setup where incremental growth can significantly boost earnings.
3. Market Sentiment and Volatility
PLTR is volatile. Many traders fear that volatility. I embrace it.
Volatility inflates option premiums, which makes covered calls more attractive. As long as I’m comfortable owning the stock, volatility becomes a source of income rather than stress.
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Why I’m Moving My Next Sell Call to 210
After closing the 185 and 190 calls, I reassessed my outlook. I still want to generate income, but I also want to leave room for upside.
That’s why I plan to raise my next sell call strike to 210.
This decision reflects three beliefs:
1. I think PLTR can trend higher over time
2. I don’t want to cap my upside too close to the current price
3. I still want to collect premium while waiting
Selling a call at 210 allows me to:
• Participate in further upside
• Earn premium from time decay
• Maintain flexibility if PLTR rallies strongly
If the stock doesn’t reach 210, I keep the premium. If it does, I’m comfortable letting the shares go at that price, or rolling again.
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The Bigger Picture: Process Over Prediction
What this experience reminded me is that trading success doesn’t come from predicting the future perfectly. It comes from:
• Having a repeatable process
• Managing risk intelligently
• Staying emotionally neutral
The $90 I made on 1 January wasn’t about being right. It was about being prepared. It was about understanding how options behave when the market falls. It was about recognizing that profits don’t need to be maximized to be meaningful.
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Closing Thoughts
Starting the year by earning option income while attending a countdown event with friends felt symbolic. It reminded me why I built this system in the first place—to let money work quietly in the background while I live my life.
Covered calls on Palantir continue to fit my philosophy:
• I believe in the company
• I respect the volatility
• I monetize time and patience
As I move my next sell call higher to 210, I’m not chasing price. I’m simply adjusting my strategy to align with my conviction. Whether PLTR consolidates, pulls back, or rallies, I’ll continue managing the position one cycle at a time.
Consistency over excitement. Process over prediction. That’s how I trade
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