Palantir Traders Bet Big on Comeback After Earnings Report
Palantir's upcoming earnings report has investors hoping for a turnaround in fortunes similar to Microsoft's recent bounce. The software provider is looking to shake off its nine-month bear market and potentially rally after Monday night's release. A comparison with Microsoft's chart suggests that Palantir may be due for a comeback, as the company's stock rose 25% after its last earnings report.
Options traders are betting big on a bigger-than-usual swing in Palantir's stock price, with more than twice as many calls traded as puts by volume. This suggests that investors are optimistic about the company's prospects. According to ThinkOrSwim data, traders bought 56,000 calls and fewer than 25,000 puts, with $120 million of premium tied to calls.
The most popular contract for bulls was the 130-strike call expiring Friday, where traders bought 8,500 contracts totaling $4.4 million. The 150 and 140-strike calls were second and third-most popular by volume, respectively. Options pricing implies a 10.5% move after earnings, bigger than the median 7.4% move in past years.
However, not all bets are on Palantir's upside. Seven of the eight biggest dollar-amount trades of the day were neutral or bearish, according to Cboe data. One notable example is a sale of 800 of the 145-strike calls in Palantir that expire in mid-December 2028, a bearish bet against extensive gains in the stock that brought in $3.4 million for the seller.