Palantir stock is struggling at key resistance levels
Palantir Technologies Inc (NASDAQ:PLTR) stock is facing rejection at its peak call open interest (OI) level and February highs, after the company reported first-quarter results last week. The security’s post-earnings rebound stalled around the 50% year-to-date level and the 78.6% Fibonacci retracement, setting the stage for lower highs.
Short interest makes up just 2.3% of the equity’s available float and is sitting at its lowest level since March, leaving plenty of room for short sellers to build their positions. What’s more, peak call OI at the 125-strike emerged as resistance, and a push below $115 could lead the 100-strike to become a magnet for the shares.
Finally, the stock's Schaeffer's Volatility Scorecard (SVS) of 83 out of 100 indicates it has exceeded options traders' volatility expectations over the past year. Our recommended June put option has a leverage ratio of 5.5 and will double on a 15.8% drop in the underlying security.