Help with selling covered calls.
New to covered calls and not sure what to do to get out of this and prevent situations like this. I have 100 shares of PLTR at $142.95/Share. The price of PLTR dropped quite a bit to $130 the other day.
There wasn't much premium to sell cc with a strike price above my purchase price so I thought I could sell 138 cc Jul 11th expiration to collect some premium but now PLTR shot up to $137 and if I get assigned then I am at a loss since I bought PLTR at $142.95.
I guess I could roll it out but it still at net debit unless I go really far out. I guess how do you manage situations like this from happening? I think I got assigned at $142.95 on a friday expiration when I was doing a cash secured put so I couldn't sell a covered call immediately with a strike price above my purchase price and over the weekend it dropped.
Posted Jul 8, 2025, 4:41 PM UTC