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Palantir Sees Heavy Trading for $35 Call Options as Stock Jumps on Inclusion to S&P 500
$Palantir (PLTR.US)$ is seeing heavier trading on call options that give the holders the right to buy the stock at $35 ahead of its inclusion into the S&P 500 index.
The stock jumped as much as 12.9% Monday to $34.23, the highest since early 2021. That share price rally moved the $35 call options closer to being in-the-money, sending the price of the contract soaring more than 200%.
More than 86,000 call options with the $35 strike price changed hands as of 11:55 a.m. in New York across 17 expiration dates that stretch through Dec. 18, 2026. That's the most for any strike price both on call and put options. More than two-thirds of that volume is sitting in call options expiring this week and the next, data compiled by moomoo showed.
After the market closed on Friday, the S&P announced that Palantir, $Dell Technologies (DELL.US)$ and $Erie Indemnity (ERIE.US)$ will replace $American Airlines (AAL.US)$, $Etsy Inc (ETSY.US)$ and $Bio-Rad Laboratories (BIO.US)$ in the S&P 500 before trading opens on Sept. 23. Dell and Erie shares also rallied.
Wedbush analyst Dan Ives said Palantir's addition to the S&P is a "validation moment" for the stock, Bloomberg reported.
That "is an important moment in the Palantir story that we believe marks a new era of enterprise growth and profitability over the next few years," Ives was quoted by Bloomberg as saying.
Palantir will join the benchmark after a 97% jump in the stock this year. The data-analysis software company has been an investor darling, having consistently beaten analysts' quarterly revenue estimates since 2020, data compiled by Bloomberg showed.
The stock "trades at the highest enterprise value-to-sales compared to its cloud software peers in anticipation of its inclusion in the S&P 500 index," Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz wrote in a note Friday. "The company's strong performance in its Commercial segment and recent alliances with Microsoft Azure OpenAI and Oracle will be crucial to support the valuation premium as Palantir may hope to expand institutional ownership of its stock."
Amid the rally, the technical indicators tracked by moomoo are flashing warning signals. Ten of the 15 gauges are showing that the stock may now be overbought, and the trend could turn bearish.
So far Monday, inflows into the stock has outpaced outflows by $60.77 million. That pares this month's net outflows to $84.1 million.
Share your thoughts on Palantir below and if you have a price target for the stock, please vote below.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Agnes Timoh : Above t
power come in me :
104166257 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
山芭佬 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Meme_Short_Queen : it's not worth more than $5, period.
fadzil227 : ok