{"id":15924,"date":"2025-08-19T11:20:54","date_gmt":"2025-08-19T15:20:54","guid":{"rendered":"https:\/\/www.mainstbeatswallst.com\/?p=15924"},"modified":"2025-08-19T11:20:54","modified_gmt":"2025-08-19T15:20:54","slug":"palo-alto-itm-covered-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=15924","title":{"rendered":"Palo Alto ITM Covered Call"},"content":{"rendered":"<p><strong>Palo Alto Networks Inc (PANW)<\/strong> shares are trading higher today after the company reported better-than-expected results for the fourth quarter. With the tech sector showing signs of cooling I decided to open an I<strong data-start=\"287\" data-end=\"316\">n-the-Money Covered Call<\/strong> to possibly keep a larger premium.<\/p>\n<p><strong>Buy<\/strong> 100 Shares PANW @ <strong>$184.75<\/strong><\/p>\n<p><strong>Sell to Open<\/strong> 1 PANW 8\/22\/25 $182.50 @ $4.25 \u2192 <strong>Premium collected $425<\/strong><\/p>\n<p><strong>If PANW goes below $182.50 at expiration<\/strong><\/p>\n<ul>\n<li>I keep the $425 premium.<\/li>\n<li>I keep the stock (at a lower price)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>If PANW stays above $182.50 at expiration<\/strong><\/p>\n<ul>\n<li>\u00a0Shares will be called away at $182.50.<\/li>\n<li>Down $225 on stock sale<\/li>\n<li>I Keep the $425 premium<\/li>\n<li>Net profit: <strong data-start=\"973\" data-end=\"981\">$200<\/strong> on the trade.<\/li>\n<\/ul>\n<p>I make ITM Covered Call trades like this for the larger upfront premium; this larger premium gives downside protection. ITM Covered Calls work well if you think the market might turn slightly bearish where you want income and don\u2019t mind giving up some upside if the stock moves higher.<\/p>\n<p>&nbsp;<\/p>\n<p>Successful trading,<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Palo Alto Networks Inc (PANW) shares are trading higher today after the company reported better-than-expected results for the fourth quarter. With the tech sector showing signs of cooling I decided to open an In-the-Money Covered Call to possibly keep a larger premium. Buy 100 Shares PANW @ $184.75 Sell to Open 1 PANW 8\/22\/25 $182.50 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-15924","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-48Q","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/15924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15924"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/15924\/revisions"}],"predecessor-version":[{"id":15925,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/15924\/revisions\/15925"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}