$256 profit ! A Bold Move That Paid Off—But Could It Have Been Bigger? 💸

Ten days ago, I made a calculated play with Palantir (PLTR) that turned out profitable, but looking back, there’s room for more. I bought PLTR at $72 per share, holding 100 shares for a total cost of $7,200. Then, I sold a call option with a strike price of $71 for a premium of $3.56 per share.

The Breakdown: How I Earned $256 🧾

Here’s how it all shook out:

• Premium Earned: Selling the call option at $3.56 netted me $356.

• Stock Sale Loss: Since I sold the shares at $71 (strike price) but paid $72 to buy them, I incurred a $1 loss per share, totaling -$100.

• Net Profit: $356 (premium) - $100 (loss) = $256 in profit.

While this strategy worked, my strike price choice could’ve been bolder.

Could I Have Earned More? 💭

Here’s where the “what if” kicks in. If I had set my strike price higher, say in the $76–$78 region, I would have:

1. Kept My Shares: If PLTR didn’t reach the higher strike price, I’d still own the stock.

2. Earned a Premium: A higher strike price typically comes with a slightly lower premium, but with PLTR’s volatility, the premium would still be attractive.

3. Captured Price Gains: If PLTR hit $76–$78, I could’ve sold at a higher price, locking in both the premium and additional profits.

For example, with a strike price of $76, and assuming a smaller premium of around $2.00, my potential return could have been $600–$800, rather than $256.

Lessons Learned: Be Brave, but Stay Calculated 🧠

The trade wasn’t bad—I locked in a 3.56% return in less than two weeks, which annualized is phenomenal. But it’s a reminder to balance risk and reward. Selling calls at higher strike prices might feel risky, but they can lead to bigger payouts if you believe in the stock’s potential.

As always, hindsight is 20/20, and every trade is a learning moment. On to the next opportunity! 💪$PLTR 20241227 71.0 CALL$ @TigerTradingNotes @Daily_Discussion @TigerStars @MillionaireTiger 

Fund for a good meal