Monness Crespi Hardt double downgraded PLTR to "sell" from "buy"
Palantir Technologies Inc (NYSE:PLTR) stock is 4.7% lower trade at $24.36 this morning, after Monness Crespi Hardt double downgraded the data analytics company to "sell" from "buy" earlier. The firm noted Palantir's valuation has reached "a gluttonous extreme."
Despite today's gap lower, PLTR still boasts a 70.8% 12-month lead, and has added 39.8% in 2024. And given the stock's 14-Day Relative Strength Index (RSI) sat up in "overbought territory" at 72 last night, maybe today's pullback was already in the cards.
Options traders remain bullish. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PLTR's 50-day call/put volume ratio of 3.01 sits higher than 88% of annual readings. Drilling down to today's options activity, 103,000 calls and 60,00 puts have crossed the tape so far today, which is double the intraday average volume. Most popular is the June 15 call set to expire at the close today.
Options look like a great way to weigh in on the security's next moves, per its Schaeffer's Volatility Index (SVI) of 41% that sits higher than just 7% of annual readings. This means options traders are pricing in low volatility expectations.