1. When I decided to sell my Palantir shares because they had exceeded my best-case scenario target price, instead of selling them outright, I started selling covered calls. I continued this strategy all the way up until I got assigned and ultimately sold all the stocks.
2. On the flip side, when I wanted to increase my $ODD position, I began selling cash-secured puts until I got assigned, at which point I had to buy the shares.
Hi Lorenzo, could you share more details about selling call and put options in 2025? Specifically, how does this strategy work to generate cash?
Thank you.
Hi Pep,
I’ll provide two examples to illustrate my point.
1. When I decided to sell my Palantir shares because they had exceeded my best-case scenario target price, instead of selling them outright, I started selling covered calls. I continued this strategy all the way up until I got assigned and ultimately sold all the stocks.
2. On the flip side, when I wanted to increase my $ODD position, I began selling cash-secured puts until I got assigned, at which point I had to buy the shares.
Does this make sense?