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Palantir Option Traders Are Bearish But The Stock Is Still Holding Support

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Palantir Option Traders Are Bearish But The Stock Is Still Holding Support

Palantir Technologies Inc (NYSE: PLTR) is expected to report first-quarter 2021 earnings on May 11 before the market opens and some options traders are expecting a bearish reaction.

When the big data analytics company reported fourth-quarter earnings on Feb. 16, its revenues had grown 40% year-over-year to $232 million. The following day, however, the stock lost almost 13% of its value and Thursday’s options activity looks as though traders are betting the company’s upcoming earnings will see the stock suffer a similar fate.

On Monday options traders bet over $1.34 million shares of Palantir are going lower.

As of mid-day Thursday, Palantir lost a key support level at the $21 level but was still holding above the upper sloping trendline of a bullish falling wedge.

See Also: Palantir Tests A Key Support And Looks Ready To Bounce: Options Traders Agree

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The Palantir Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

  • At 10:26 a.m., a trader executed a put sweep, near the ask, of 374 Palantir options with a $20 strike price expiring on June 18. The trade represented a $63,954 bearish bet for which the trader paid $1.71 per option contract.
  • At 10:26 a.m., a trader executed a put sweep, near the ask, of 346 Palantir options with a $20 strike price expiring on June 18. The trade represented a $59,512 bearish bet for which the trader paid $1.72 per option contract.
  • At 10:27 a.m., a trader executed a put sweep, at the ask, of 587 Palantir options with a $20 strike price expiring on June 18. The trade represented a $101,551 bearish bet for which the trader paid $1.73 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 391 Palantir options with a $22 strike price expiring on May 14. The trade represented a $91,494 bearish bet for which the trader paid $2.34 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 446 Palantir options with a $22 strike price expiring on May 14. The trade represented a $106,148 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 593 Palantir options with a $22 strike price expiring on May 14. The trade represented a $141,134 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 327 Palantir options with a $22 strike price expiring on May 14. The trade represented a $77,826 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 461 Palantir options with a $22 strike price expiring on May 14. The trade represented a $109,718 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 243 Palantir options with a $22 strike price expiring on May 14. The trade represented a $57,838 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:01 a.m., a trader executed a put sweep, near the ask, of 327 Palantir options with a $22 strike price expiring on May 14. The trade represented a $77,826 bearish bet for which the trader paid $2.38 per option contract.
  • At 11:02 a.m., a trader executed a put sweep, near the ask, of 546 Palantir options with a $20 strike price expiring on May 14. The trade represented a $62,790 bearish bet for which the trader paid $1.15 per option contract.
  • At 11:03 a.m., a trader executed a put sweep, near the ask, of 439 Palantir options with a $20 strike price expiring on May 14. The trade represented a $50,485 bearish bet for which the trader paid $1.15 per option contract.
  • At 11:05 a.m., a trader executed a put sweep, near the ask, of 1074 Palantir options with a $20 strike price expiring on May 14. The trade represented a $125,658 bearish bet for which the trader paid $1.17 per option contract.
  • At 11:07 a.m., a trader executed a put sweep, near the ask, of 856 Palantir options with a $20 strike price expiring on May 14. The trade represented a $102,720 bearish bet for which the trader paid $1.20 per option contract.
  • At 12:06 p.m., a trader executed a put sweep, at the ask, of 242 Palantir options with a $17.50 strike price expiring on January 2023. The trade represented a $118,580 bearish bet for which the trader paid $4.90 per option contract.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

See also: How to Buy Palantir Technologies (PLTR) Stock

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

PLTR Price Action: Shares were trading down 7% to $19.63 at publication time.

 

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Posted-In: Options Markets

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