The company scored an AI and machine learning contract
Shares of Palantir Technologies Inc (NYSE:PLTR) are up 1.5% to trade at $17.88 at last check, after the company inked a $250 million contract with the U.S. army to test and develop artificial intelligence (AI) and machine learning.
Drilling down to today's options activity, 81,000 calls and 19,000 puts have been traded, four times the volume that is typically seen at this point. Most popular is the weekly 10/13 18.50-strike call, where new positions are opening, followed by the 18-call in the same series.
At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PLTR's 50-day put/call volume ratio that sits in the 89th percentile of annual readings. This indicates that, while calls still outpace puts on an overall basis, the latter have been picked up at a quicker-than-usual clip.
The security is today trading at its highest level since early August, but overhead pressure remains at the $18 level. A floor at the $15 region has captured multiple pullbacks this year, including from its Aug. 18, 12-month of $20.23. In 2023, PLTR is up 174% so far.