Palantir Covered Calls: Profit Even When the Stock Soars

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Mark Yegge breaks down how he earned $9,000 in just six weeks using a covered call strategy on Palantir (PLTR) while the stock sprinted higher. If you think covered calls only work when a stock stays flat or drops, this post is about to shift your entire perspective.

Overview: The Myth of Covered Call Limits

Many investors mistakenly believe that when the stock you're selling calls on rises sharply, you're losing money. Mark disagrees:

"Don't forget about your base position going up. Covered calls are bullish."

In fact, when done right, you can ride a soaring stock while still collecting weekly income—the juice.

Step-by-Step Breakdown of the Palantir Trade

April 16th: Position Initiated

Bought 20 synthetic contracts (deep-in-the-money calls mimicking the stock)
Cost: ~$136,000
Later added 10 more contracts

Mid-April to May: Stock Takes Off

Palantir rose significantly
Sold base position for $190,000, netting $77,000 profit on the synthetic calls alone

Rolled Positions Multiple Times

Rolled short calls weekly to capture more premium
Never got assigned
Used working capital to manage rolls, minimizing risk and maximizing cushion

Total Results

Base Position (synthetic long calls): +$77,000 profit
Short Calls (top leg): -$67,000 cost in working capital, but offset by collected juice
Net Total: $9,000 profit in 6 weeks

Mark managed to reduce capital exposure from $136K to $96K to $56K, lowering risk while continuing to generate returns.

What About the Risk?

Mark explains the concept of whipsaw:

"If a stock goes up, you spend capital to roll your short calls. If it comes back down, you might lose money if you’re not positioned right."

The solution? Stay in-the-money to maintain downside protection and consistent premium generation.

Key Takeaways

Covered calls can be profitable in bull markets
Use synthetics to control more shares with less capital
Focus on weekly income (juice), not just stock movement
Proper rolling techniques prevent assignment and maintain control

Frequently Asked Questions (FAQ)

Q1: If the stock moves up fast, don’t I lose money on the short call?

No. While the short call rises in value, your long (synthetic) position rises too—often by more.

Q2: What is a synthetic?

A deep-in-the-money call that behaves like the stock but requires less capital.

Q3: Why not just own the stock?

Synthetics offer more leverage and flexibility, especially for weekly income strategies.

Q4: How often should I roll my calls?

Weekly, according to Mark. This gives more chances to collect premium and adjust to market conditions.

Q5: What if the stock crashes?

In-the-money positions offer some downside protection. Plus, Mark teaches defensive adjustments.

Life-Improving Tips from This Strategy

Shift from Hope to Income:
Stop hoping your stock will go up. With covered calls, you turn a stagnant or even slightly declining stock into an income-producing asset. That shift in mindset alone can transform how you approach investing—and your financial future.
Let Discipline Beat Emotion:
By following a system like weekly rolling covered calls, you’re no longer reacting emotionally to stock movements. You become proactive, structured, and consistent. That kind of discipline isn’t just good for your portfolio—it’s good for your confidence and peace of mind.
Turn Your Portfolio into a Business:
Think of your stocks not as lottery tickets, but as income-generating inventory. Like a business selling products weekly, you're “selling” time (through options) to generate weekly cash flow. Treating your investing like a business leads to smarter decisions and more reliable results.
Focus on Progress, Not Perfection:
Even if the stock doesn’t behave perfectly, the strategy still helps you win more often than not. This builds momentum in your finances—and in your life.
Harness External Forces for Your Gain:
The “juice” comes from other people’s speculation. Instead of being the gambler, you become the house. That’s a life skill: find ways to profit from what others are already doing.

Call to Action

Want to generate consistent weekly income like Mark?

Join the Cash Flow Machine Elite Course and learn how to:

Sell covered calls for weekly income
Use synthetics to reduce capital outlay
Defend positions and roll with precision

Click the link below to enroll and start building your own Cash Flow Machine.

Subscribe to Mark’s YouTube channel for ongoing trade breakdowns
Join the free Insider Tips Newsletter to stay updated

Build a portfolio that pays you — even when stocks soar.

Get started today

Conclusion

Covered calls aren’t just about squeezing income from a stock—they’re about taking control of your financial outcomes, regardless of what the market throws at you. This Palantir trade breakdown shows that even when the stock soars, you can still win, if you're using a smart, disciplined approach.

Mark Yegge’s transparency highlights that it’s not about trying to predict the perfect market moment—it’s about creating weekly income using repeatable systems. Whether your account is large or small, this strategy is scalable, manageable, and life-changing when executed consistently.

Remember, it's not about hitting home runs. It's about getting on base week after week—and eventually, building the life you want from steady income.

Palantir Covered Calls: Profit Even When the Stock Soars

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