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PLTR Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Palantir Technologies Inc. (Technology) · $192.07 ·
Analysis generated Oct 6, 2026 ·
Data as of market close Oct 6
Quick Take
PLTR is trading at $192.07 with RSI at 65 (neutral territory). Options IV is at 53% — 16% below its 30-day average of 63%. 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)
65
IV Today
52.8%
IV vs 30d Avg
-17%
MACD
bullish
ADX
30
MFI
77
The Setup
PLTR Covered Call
LONG STOCK
100 shares @ $192.07
SHORT CALL
$205 Dec '26 · $13.8/sh
Net Cost
$17,827
Max Profit
+$2,673
Break-even
$178.27
Projected P&L at Target
+$2,673
(15.0%)
P&L at Expiry
P&L Scenarios
What happens at different PLTR prices by expiry:
| PLTR Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $154 (-20%) | -$2,714 | -$2,576 | -$2,479 | -$2,461 |
| $163 (-15%) | -$1,927 | -$1,729 | -$1,556 | -$1,501 |
| $173 (-10%) | -$1,208 | -$950 | -$683 | -$541 |
| $182 (-5%) | -$564 | -$252 | +$111 | +$420 |
| $188 (-2%) | -$216 | +$123 | +$536 | +$996 |
| $192 (0%) ← now | -$0 | +$354 | +$795 | +$1,380 |
| $196 (+2%) | +$203 | +$569 | +$1,033 | +$1,764 |
| $202 (+5%) | +$485 | +$864 | +$1,351 | +$2,340 |
| $205 (+7%) ← target | +$635 | +$1,019 | +$1,514 | +$2,673 |
| $211 (+10%) | +$894 | +$1,282 | +$1,778 | +$2,673 |
| $221 (+15%) | +$1,234 | +$1,614 | +$2,085 | +$2,673 |
| $230 (+20%) | +$1,511 | +$1,872 | +$2,293 | +$2,673 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -16% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 30 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 77 — 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 30 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.