Palantir's high implied volatility, especially with earnings approaching, offers significantly higher premiums on covered calls compared to Meta, but with increased risk of assignment.
Source Post
How I Sell Covered Calls to Generate Monthly Income (2026 & 2027 Guide)
Aug 2, 2026
The creator discusses selling covered calls as an income-generating strategy, highlighting three stocks with varying volatility levels. For low implied volatility stocks, the strategy is managed more aggressively, while high volatility stocks require a more conservative approach. McDonald's is presented as an example of a low implied volatility stock, favored for its real estate holdings and recent digital ordering initiatives. The creator notes that McDonald's has been flat over the last month but down significantly over the last six months, which is seen as a positive for covered call strategies as it suggests a potential value play and a stock that is not at a 52-week high.
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Meta is used as an example of a medium volatility stock for covered call strategies, requiring a more conservative management approach compared to low volatility stocks.
McDonald's is a low implied volatility stock that the creator likes for covered calls because it's near its 52-week low and has sold off significantly over the last 6 months, presenting a good value opportunity.
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