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Options Trader
Basic Strategies for Big Profits in Any Market

Buy Call PLTR

May 14, 2024
Roll Position: Against PLTR Stock, Buy back the May 22 Calls and Sell the June 22 Calls (exp. 6/21).

Ahead of the “big” CPI report tomorrow (inflation data), which could move the market dramatically, let’s buy back the PLTR May 22 calls that we sold for $2.27 for $0.20 (approximately) so that we can then sell the June 22 calls for $0.95 (approximately).

To execute this trade you need to:
Buy to Close the PLTR May 22 Calls
Then
Sell to Open the PLTR June 22 Calls

After this adjustment the position will be:
Long PLTR Stock
Short PLTR June 22 Calls

This roll will drop our breakeven on our position to 19.52 (approximately).

Finally, we are likely going to roll our MSOS calls in the days to come as well, ahead of expiration on Friday.

May 6, 2024
Palantir (PLTR) Earnings

Today after the close Palantir (PLTR) will report earnings. Headed into the event the stock is trading at 25, and we are holding the May 22 Covered Call with a breakeven at 20.27.

To refresh, ideally the stock closes above 22 on May expiration, at which point our position will close for a profit of 8.53%.

I am going to hold my position through the event as the stock looks pretty good, option activity is red hot today, and we have nearly $5 of room to the downside until our position takes much pain.

And while I am going to hold my position through the quarterly report, if you do not want to take the risk, you could close your trade today for a profit of approximately $100 per covered call that you sold.

PLTR - With the stock trading at 25, the options market is pricing in a move of $4 this week, or 21 to the downside and 29 to the upside.

Open interest is skewed bullish on a ratio of 1.4:1 call vs. put.

Skew is pricing in extreme downside and upside risk.

April 11, 2024

Covered Call/Buy-Write: Buy Palantir (PLTR) Stock and Sell the May 22 Calls (exp. 5/17) for a Net Price of $20.4 or less.

Yesterday we sold out of our PLTR April 19 call position as time was running out on our trade, and the stock and the market has been mostly chopping around. Today we are going to hop right back into a PLTR trade; however, this time we are going to do so by executing a short volatility covered call.

To execute this trade you need to:
Buy PLTR Stock
Sell to Open the PLTR May 22 Calls (exp. 5/17).

For every 100 shares of stock you buy, you can sell 1 call. For every 200 shares you purchase, you can sell 2 calls. And so on …

The most you can make on this trade is $160 per covered call if PLTR were to close above 22 on May expiration, or a yield of 7.84%.

The breakeven on this trade is at 20.4.

The most you can lose on this trade is $2,040 per covered call if PLTR stock were to go to zero.

Essentially, we are adding a trade that will profit if PLTR stock chops around or goes higher over the next month. Also, if PLTR were to fall, though not dramatically, that is fine for this position as well.

Finally, this trade will likely have its ups and downs as PLTR stock is volatile. Importantly, the company will report earnings in the May expiration cycle which is part of the reason we are collecting such a big premium via the May 22 call sale.

However, with a breakeven at 20.4, and the opportunity to make a yield of 7.84%, I like the risk/reward in this trade.

April 10, 2024
Sell Existing Position: Sell your PLTR April 19 Calls for $3.35 or more.

With just a week and a half to go until expiration, time is running out on our PLTR position. For that reason, and with the market perhaps weakening (maybe) today, we are going to exit the final piece of our position for a small profit.

To execute this trade you need to:
Sell to Close your PLTR April 19 Calls.

Please note, we could jump back into a PLTR position in the days to come, though I would need to see the stock firm up and option activity get back in gear.

February 13, 2024
Sell a Third of your PLTR April 19 Calls for $5.50 or more.

PLTR is one of the handful of stocks that are the poster boys for the AI rally. And while I continue to be impressed by the stock action, and especially the option activity, just in case today is the first day of the AI cooldown, which could really hurt the high fliers such as PLTR, let’s stick to the plan and lock in a profit of approximately 80% on the second third of our call position.

To execute this trade you need to:

Sell to Close a Third of your PLTR April 19 Calls.

I hope this sale is a massive mistake and PLTR continues its rise in the weeks to come. Only time will tell …

November 14, 2023
Sell a Third of Existing Position: Sell a Third of your PLTR April 19 Calls for $3.70 or more.

PLTR is breaking out to a new recent high today. Let’s stick to the plan, lock in a profit of approximately 20%, and then go for the home run on the balance of the trade.

To execute this trade you need to:
Sell a Third of your PLTR April 19 Calls

As is always the case when we take partial profits, we hope this sale today is a big mistake and the stock and option trade much higher in the weeks/months to come.

Please note, option activity remains red hot in PLTR. That being said, I’m going to stick to the system and take partial profits today.

November 3, 2023
High Risk/High Reward Trade: Buy the Palantir (PLTR) April 19 Call (exp. 4/19/2024) for $3.50 or less.

The market is potentially getting back in gear, and option activity heated up yesterday. This is a good first step.

Let’s add some bullish exposure via a call buy in Palantir (PLTR) which surged higher on earnings yesterday and attracted a ton of call buying, including this trade:

Buyer of 12,000 Palantir (PLTR) December 21 Calls for $0.45 – Stock at 18.

Please note, PLTR is a wild stock, and should the market and growth stocks fall yet again, this PLTR trade will very likely fail. For that reason, I am labeling this call buy as a “High Risk/High Reward” trade. Though of note, I am buying my full-sized position.

To execute this trade you need to:
Buy to Open the PLTR April 19 Call.

The most you can lose on this trade is the premium paid, or $350 per call purchased.

As noted above, we are taking a somewhat speculative shot that the market is going to get back in gear. However, if the sellers once again take over, PLTR will almost surely fall with it and potentially quickly.

Essentially, this is either going to be a wildly successful trade or it will fail and we will take a loss. Should be “fun”!

Position (Original)
PLTR April 19 Call
Position Strategy
Buy Call
Opened Date
November 3, 2023
Expiration
April 19, 2024
Net Price
3.10
Strike
19
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.