Sold Credit Spread on PLTR – 1.05 % potential income return in 14 days

On January 8, 2021, we sold bull put credit spread on PLTR stock with an expiry set in the next 14 days. For this trade, we get a premium of $30 (before commissions)

These trades come as the #6 and #7 in the month of January, according to our trading plan for this month, the premium generated from this trade makes us about 1.08% from our $2,500 monthly goal.  While in total we have reached already 11.50% so far. Awesome.

Palantir Technologies is a public American software company that specializes in big data analytics. Headquartered in Denver, Colorado, it was founded by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp in 2003.

Here is our trade setup:

  • BOT 1 PLTR JAN 22 '21 - 24 + 23 Put Bull Spread  -0.3 USD 

For this trade, we got a premium of 25.2 USD (after commissions) or 1.05% potential income return in 14 days.

What happens next?

On expiry date January 22, 2021, PLTR is trading above $24 per share -  options expire worthlessly and we keep premium - if PLTR trades under $24 on the expiry date, we get assigned.

But as we already have collected a premium of $0.25 per share, our break-even price for this trade then is $24-$0.25 = $23.75

Selling credit spreads on PLTR stock
Selling credit spreads on PLTR stock
  • Running Total  5 Trade since January 4, 2021
  • Options income $129