Update: Palantir (PLTR) Nov Call Spread

by Dan November 9, 2020 1:55 pm • Trade Updates

On Oct 7th on RiskReversal and In The Money with Fidelity Investments I detailed a bullish trade idea on Palantir (PLTR):

 

Over the last week, the stock has exploded from $10, the long call strike to $15 the short call strike of the spread.

 

Now with the stock at $15.10 the five wide call spread, that cost $1.10 on Oct 7th with less than two weeks to expiration is now worth $3.50, it can only be worth $5. I think it makes sense to take the profit and move on, at this point, you are risking $3.50 to make $1.50 if the stock is $15 or higher on Nov expiration. No longer a great risk-reward, but a good trade none the less.