Palantir Stock Falls Following CEO's Comments

Palantir stock is down over 13% in 2021

Assistant Editor
Nov 23, 2021 at 1:15 PM
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The shares of Palantir Technologies Inc (NYSE:PLTR) are lower this afternoon, last see down 1.5% at $20.34, after the company's CEO Alex Karp called on technology companies doing business with China or U.S. adversaries, to justify their reasoning. Specifically, on CNBC's "Squawk Box," Karp said, "If you want to work in China or any other country that is adversarial ... you should disclose it and defend it." The call to action comes as Apple (AAPL), along with many other chip companies, continue to operate in China, while a number of tech names have pulled out of the region amid increased internet censorship.

Palantir stock has had a rough go of it on the charts, falling in six consecutive sessions and today trading at its lowest level since May. In fact, over the last month, PLTR has shed 16.9%, with pressure from the formerly supportive 10-day moving average. The equity now sports a 13.6% year-to-date deficit. 

PLTR Chart Nov 23

A broader look shows calls have been popular over the last 10 weeks, however. This is per the security's 50-day call/put volume ratio of 3.64 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 83% of readings from the past year. This indicates long calls have been getting picked up at a much faster-than-usual pace.

Now may be an ideal time to weigh in on Palantir stock's next move with options, as the equity sports attractively priced premiums at the moment. PLTR's Schaeffer's Volatility Index (SVI) of 54% stands higher than just 11% of readings from the last 12 months. This suggests the options market is pricing in low volatility expectations for the equity right now. What's more, the equity's score on Schaeffer's Volatility Scorecard (SVS) stands at 98 out of 100, meaning the security has often realized higher volatility than the options pits have priced in, making it a perfect premium-buying candidate.

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