How I Profited $37 in Just One Hour with a Covered Call Strategy 💰

How I Profited $37 in Just 6 Houra with a Covered Call Strategy 💰

What Is a Covered Call? 📊

A covered call is a conservative options strategy where you sell a call option against shares you already own. By selling the call, I agree to sell my shares at a specific price (strike price) if the buyer exercises the option. In return, I get paid a premium, which adds to my overall return.

In this case, I owned 100 shares of Palantir Technologies (PLTR), purchased on December 27, 2024, for $78.32 each. Later that day, I sold a call option with a strike price of $77 that expired on the same day (zero-day expiration).

How I Made 0.5% in an Hour 🚀

Here’s what happened step-by-step:

1. Bought Shares: I purchased 100 shares of PLTR at $78.32 on December 27.

2. Sold a Call Option: I sold a call at a strike price of $77, taking a premium of $1.69 per share (total $169).

3. Quick Expiry: The call option expired on the same day, and the shares were assigned (sold) at $77.

Here’s the breakdown of my profit:

• Premium Earned: $169 from selling the call.

• Share Sale Loss: $78.32 - $77 = -$1.32/share (-$132 total).

• Net Profit: $169 (premium) - $132 (loss) = $37.

While this may not sound huge, it’s a 0.5% return in just one hour. If I consistently make these moves, it could lead to significant returns over tim$Palantir Technologies Inc.(PLTR)$  

!

What Is Zero-Day Expiration? ⏳

Zero-day expiration refers to options that expire the same day they are traded. These are high-risk, high-reward options because the time for price movement is minimal. I sold a zero-day expiration call on PLTR, making a quick profit as the option’s value dropped rapidly, and the stock price stayed within range.

My Takeaway 🎯

This strategy works best if you don’t mind selling your shares or have a target sell price in mind. By using a covered call, I reduced the cost of buying shares and locked in a small but steady profit within hours.

Disclaimer: Options trading involves risks and isn’t suitable for everyone. Always assess your risk tolerance and strategy goals before trading. 😊

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