I was filled on a trade 1 minute before the close.
On Wednesday I bought 2000 shares of Palaltir (PLTR) at $28.40 and sold a $29 Call. This Call gave me a $4000 premium and the Call was expiring today. Earlier the stock was up to $33.50 with a clear path to assignment.
About 2 hours before the close Citron Research sent out a tweet that they were shorting the stock and gave the stock a price target of $20. This caused the stock to tank. It went all the way down to $26.
Luckily for me it bounced back but not enough for me to get assigned. The stock closed at $27.66. Remember I own 6000 shares. The other 4000 shares will get assigned because the Strike Price is at $19.
Right at the close, knowing I wasn’t gonna get assigned I sold another Call for next week against these 2000 shares. I sold 20 PLTR 12/4/20 $29 Calls for the premium of $2.80. This Call gives me a premium of $5600 toward next week’s income. If I get assigned next Friday, not getting assigned this week will work out well.
Sell to Open 20 PLTR 11/4/20 $29.00 C @ $2.80 (+$5600)
This trade is a Covered Call on previously owned stock so it gets a Risk Factor 2. When ever you get a premium like this there is some risk. Especially when you get a bad tweet from Citron Research. It’s crazy how news moves stocks!
Citron Research in an on-line investment newsletter that reports if they think a stock is overvalued and they actually Short stock. They also report companies that are engaged in fraud.
Lets watch how their tweet will affect the stock on Monday morning. I pray it doesn’t drop to the low 20’s.
Also watch for my report on my Tesla trade. The stock ran up on my Naked Call and I had to do a Roll-out.
Successful trading,
Steve
The Options Coach