Palantir is experiencing heightened interest from options traders ahead of its earnings report, with a notable preference for call options. On Monday, traders purchased over 56,000 call options compared to fewer than 25,000 put options, indicating a bullish sentiment. The total premium traded reached $160 million, with $120 million linked to calls.
The most popular call option was the 130-strike, which requires an 8% increase in the stock price to be profitable by Friday. Options pricing suggests a projected 10.5% move post-earnings, surpassing the average of 7.4% from the past year.
However, there is also bearish activity, as evidenced by significant trades that indicate skepticism about substantial gains, including a notable sale of 800 145-strike calls set to expire in December 2028, which generated $3.4 million for the seller. This mixed sentiment reflects a cautious optimism as traders await the earnings results