Out of My Palantir Long Call Option
On Tuesday, Jan 14th I bought 2 contracts of the PLTR 6/20/25 $67.50 Calls. I paid $11.00. Yesterday was a huge day and today PLTR is up again. I love this stock, and I had until June before Expiration, but I love taking profit. I went out with my Expiration Date to June for protection.
In the middle of December I bought a bunch of options with the Expiration Date out only a month and I took a beating on most of them. With these long options I went out only a month because I anticipated a Santa Rally but Fed Chair Powell put an end to that with his big mouth lol, causing all stocks to go down. With only 1 month options there was not enough time left on the contracts for the stocks to recover from the “Powell Losses.” I planned on being out of these positions before the end of the year. It just goes to show you that you must stick to your rules. And my rule is to NEVER buy short term options. Normally I only sell short term options where Time Decay is on my side. I paid dearly for my mistake but I still ended the year up 72%. I hope to write more about these positions soon. I’ve been very busy lately. If you go to “Trade History 2025” you will see some of these losers under week ending 1/10/25.
With this option I sold today I had a 6 month option and only kept the position 2 days. I made a nice profit and got out. Again, I only buy the extra time with Long Options for protection. If the stock takes a dip there is plenty of time for the stock to recover. Just because I buy a 6 month option doesn’t mean I hold for 6 months. I’m still a trader! I want to grab profit, if it meets my goal, as soon as possible and put it in my mattress. With this position below I invested $2200 for 2 contracts and profited $600. This is a Return on Investment (ROI) of 27% in 2 days. This is the power of options!
1/14/25 – Buy to Open 2 PLTR 6/20/25 $67.50 C @ $11.00
1/16/25 – Sell to Close 2 PLTR 6/20/25 $67.50 C @ $14.00
Profit +$600
If you have any questions on why I spend the extra money for longer term options send me an email.
Successful trading,
Steve
The Options Coach