Palantir Sees $30 Calls Soar as Share Price Surges Ahead of Earnings
$Palantir (PLTR.US)$ shares climbed more than 6% ahead of earnings and the options market was signaling that investors and speculators were betting the party could get going, at least until the end of next week.
Volume advanced on call options that give the holder the right to buy Palantir shares by the end of this week at $30. That strike price is more than 20% higher than the stock price of $24.79 as of 10:54 a.m. in New York. About 16,285 contracts have already traded at that time, surpassing the 11,550 open interest. Those contracts jumped 120% to 33 cents a share.
The appeal of such bullish bets skyrocketed as shares climbed to $24.77 at 10:18 a.m. in New York. Analysts' estimates compiled by FactSet showed the company is expected to report a 17% jump in revenue to $615 million in the first quarter that ended March 31, Barron's reported. That compares with Palantir's outlook for $612 million to $616 million for that period.
In February, when the company released its fourth quarter earnings, Chief Executive Officer Alexander Karp said in his shareholder letter that he expects Palantir's U.S. commercial business to continue to be a significant driver of growth, with its artificial intelligence platform (AIP) "contributing to new revenue and new customers."
In total, more than 400,000 Palantir options have traded so far, landing the stock in the no. 4 spot among the stocks that are seeing the highest options volume. That placed Palantir just behind investor favorites $Tesla (TSLA.US)$ and $NVIDIA (NVDA.US)$, which have been alternating at the top, and $Apple (AAPL.US)$.
More than 304,000 Palantir calls were traded around 11 a.m. in New York, more than double the put options. The put-call ratio fell to 0.40. The most-active contract was the call that give the holder the right to buy Palantir shares at $25 by the end of the week, as the share price climb near that level.
More than 304,000 Palantir calls were traded around 11 a.m. in New York, more than double the put options. The put-call ratio fell to 0.40. The most-active contract was the call that give the holder the right to buy Palantir shares at $25 by the end of the week, as the share price climb near that level.
Almost 26,000 of the $25 calls were traded so far, surpassing the open interest of 21,320. The price of such calls climbed more than 60% to $1.705 per share. The volume likely includes holders that sold covered calls and are now buying buy those contracts to ensure their shares won't get called away before they expire on Friday.
However, 10 of the 15 technical indicators tracked by moomoo showed that Palantir is now overbought, signaling the stock could reverse.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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73728680 : Hello
Joseph Mcgowan : trying all day need more information
Yikers : crazy times
Kenasia : crazy but possible
105290196 : I want share planter
stockmarkettec : Thanks for the heads up
StockPickingPoodle : well you said after earnings but had no cut off date so ,Yes 30.00 someday is possible
104018292 :