On Friday I closed a short position in two Planatir Technologies (PLTR) put option contracts (strike: $20; expiration: 19MAR20). With PLTR shares up again this morning, before the market opens, I would have earned more money by setting a lower limit order price to buy to close. When I checked the market Friday morning, PLTR traded at $26.78 but closed later at $32.58. The bid for our option was $1.62 in early trading on Friday but closed for $1 before trading ended.
Our limit order repurchased the option contracts for one dollar, each, plus commissions. We netted $157.25 or 3.9% of the $4,000 required for collateral after opening the position on Wednesday.
Shares seem to be rising as the market opens this morning, $37.13 when I clipped the below chart, but nearly $39 as I type this sentence. I expect more volatility in PLTR in the near future and I will continue to watch for opportunities like the one we closed Friday.
Source: MarketWatch.com