PLTR has plenty of technical support in place
Subscribers to Schaeffer's Weekend Trader options recommendation service received this PLTR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Palantir Technologies Inc (NASDAQ:PLTR) shares rallied in response to the company’s better-than-expected fourth-quarter report, as well as its upbeat 2025 and fiscal first-quarter outlook. The security took out and retested 10 times its initial public offering (IPO) price at $100, and on Friday was trading at all-time highs. Meanwhile Ark Investment liquidated 30% of its position in the software name, but PLTR moved higher, signaling underlying strength.
Despite the company’s strong showing in the earnings confessional, only one analyst chimed in with an upgrade. The brokerage bunch is largely bearish toward PLTR, with 16 of the 18 firms in coverage sporting a "hold" or worse rating. And while call adds were popular after earnings, the biggest open interest (OI) change beyond the weekly 2/7 expiration was the March 80 put.
Short interest coming into 2025 was at multi-month highs and is more than 60% above the 2024 low, indicating Palantir Technologies stock could benefit from a short squeeze. There’s also potential for a post-earnings continuation move, as many sit on the sidelines and await a pullback.
Our recommended call option has a leverage ratio of 3.2 and will double on a 22.9% rise in the underlying equity.