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PLTR Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Palantir Technologies Inc. (Technology) · $173.96 ·
Analysis generated Aug 20, 2026 ·
Data as of market close Aug 20
Quick Take
PLTR is trading at $173.96 with RSI at 67 (neutral territory). Options IV is at 55% — 24% below its 30-day average of 72%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
67
IV Today
55.3%
IV vs 30d Avg
-24%
MACD
bullish
ADX
32
MFI
72
The Setup
PLTR Covered Call
LONG STOCK
100 shares @ $173.96
SHORT CALL
$190 Oct '26 · $7.65/sh
Net Cost
$16,631
Max Profit
+$2,369
Break-even
$166.31
Projected P&L at Target
+$2,369
(14.2%)
P&L at Expiry
P&L Scenarios
What happens at different PLTR prices by expiry:
| PLTR Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $139 (-20%) | -$2,849 | -$2,769 | -$2,720 | -$2,714 |
| $148 (-15%) | -$2,092 | -$1,966 | -$1,866 | -$1,844 |
| $157 (-10%) | -$1,391 | -$1,215 | -$1,041 | -$975 |
| $165 (-5%) | -$756 | -$530 | -$270 | -$105 |
| $170 (-2%) | -$410 | -$157 | +$153 | +$417 |
| $174 (0%) ← now | -$195 | +$75 | +$415 | +$765 |
| $177 (+2%) | +$9 | +$292 | +$659 | +$1,113 |
| $183 (+5%) | +$291 | +$590 | +$989 | +$1,635 |
| $190 (+9%) ← target | +$643 | +$954 | +$1,376 | +$2,369 |
| $200 (+15%) | +$1,043 | +$1,354 | +$1,767 | +$2,369 |
| $209 (+20%) | +$1,320 | +$1,617 | +$1,991 | +$2,369 |
Why This Strategy, Why Now
- RSI at 67 — extended, ideal for selling calls
- IV -24% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 32 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 72 — money flow confirms overbought
Key Risks
PLTR has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if PLTR approaches the strike before expiry.
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.