Palantir just had a monster earnings call, sending the stock soaring over 24% by the close. Every analyst is suddenly in love with it. But let’s talk about why that kind of price action makes covered calls tricky.
I love covered calls—but only on stocks that move more predictably. A 25% jump? That’s a tough pill to swallow if you sold calls too early. Managing covered calls means knowing when to leave a little on the table and when to stay out altogether.
Options trading is all about understanding volatility. If you’re buying options, you want volatility high. If you’re selling, you want it low. Simple as that. You can’t predict the future, but you can do your homework.
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#OptionsTrading #CoveredCalls #Palantir #StockMarket
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