Palantir Stock Pushes Higher After Earnings

The stock has been seeing pressure from its 50-day moving average

Deputy Editor
May 11, 2021 at 10:41 AM
facebook twitter linkedin

The shares of Palantir Technologies Inc (NYSE:PLTR) are up 6.4% to trade at $19.66 at last check, so far defying the broad-market selloff. This comes after the data analytics company reported first-quarter earnings of 4 cents per share -- in line with analyst estimates -- as well as better-than-expected revenue. However, keeping gains in check today is the company's second-quarter forecast, which depicted slow revenue growth. Meanwhile, the software platform has begun to accept bitcoin payments from customers, and is considering investing in the crypto giant. 

It's been a volatile morning for PLTR, which at first traded deep in the red before the open before pivoting higher at the bell. Longer term, Palantir stock has been steadily moving lower on the charts since hitting a record high of $45 on Jan 27. During this channel of lower highs, the shares' with 50-day moving average keeping a lid on any breakouts. Context is required though: PLTR is still almost double at its initial public offering (IPO) price of $10 from Sept. 30.

On the analyst front, there is plenty of room for bull notes that could send the security higher. Of the four analysts in coverage, three carry a "hold" or worse rating.

Options traders have been quick on the draw this morning, with total options volume running at triple what's typically seen at this point. More specifically, 212,000 calls and 106,000 puts have crossed the tape already, with the weekly 5/14 20-strike call seeing the most activity. New positions are also being opened at the 19-strike call in the same session. 



These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners