I bought back the PLTR Nov 20 $15 calls on Friday for about $2,500 loss. I could've let my PLTR shares get called away and made $5,200 or about $2,700 after taxes. Another option was rolling the $15 calls into further out date calls but then I would've been subject to wash rule and prevented from applying the $2,500 loss to this year. Since I'm still bullish on PLTR, I felt the best option was to buy back the calls for loss and then wait 31 days and sell covered calls then. It looks like that was the right decision since I already made back about $1,900 of the loss and didn't add any further tax liability for this year.
XPEV is just a beast and it reached $60 before Nio. And TSLA is being TSLA and kicking butt as usual. I want to sell covered calls on both TSLA and XPEV but I'm going to wait for higher prices. I can sell June 18, 2021, TSLA $800 calls right now for about $45 but I think if I wait closer to S&P add date next month, I might be able to get $60 or $70 for the same calls or even hundreds. Really, no one knows how high TSLA will go next month. $700-$800 isn't out of the question. When funds have to buy like 30% of the float, crazy things can happen. It took Apple like 9 years to buyback around 30% of their float through hundreds of billions in buyback. 30% of TSLA float have to be bought in matter of days. That can only cause tremendous upside pressure. Likes we have never seen before in history.