Page 114 - Peter Randall "The Craft of the Knot.."

STEP 2 Use the bight to tie an Overhand Knot.

STEP 3 Pass the hook or swivel through the bight of the running end.
Take out slack with both ends together, and finish tightening with the
standing part.

Note that in order to tie the Palomar, the eye should be large enough
to pass a bight through it.

REEL KNOT