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Options Traders Blast Palantir (PLTR) Stock After Beat-and-Raise
By: Schaeffer's Investment Research | August 12, 2021

• Palantir raised its full-year adjusted free cash flow outlook

• The company's revenue grew 49% year-over-year for the second consecutive quarter

Software platform concern Palantir Technologies Inc (NYSE:PLTR) threw its hat into the earnings ring this morning, reporting second-quarter revenue that shattered Wall Street's estimates. Earnings of 4 cents per share were in line with forecasts, while revenue saw a 49% year-over-year surge for the second-straight quarter. In response, Palantir raised its full-year adjusted free cash flow outlook to more than $300 million.

Palantir stock is soaring in response, last seen up 9.1% to trade at $24.39, a level of trading that coincides with an early July bear gap that saw the $23.50 mark move in as an area of resistance for the shares. In addition, PLTR is pacing for its first close above the 120-day moving average since June. Today's positive price action also helped the security break past pressure at the year-to-date breakeven. PLTR now sports a 72% nine-month lead.

Options traders have been quick on the draw this morning, with total options volume running at eight times what's typically seen at this point. More specifically, 164,000 calls and 45,000 puts have crossed the tape already, with the weekly 8/13 25-strike call seeing the most activity, followed up by the 25 call in the August monthly series. Positions are being opened at the former.

Analysts have yet to chime in on PLTR, but there's plenty of room for bull notes going forward, which could send the stock higher. Of the four analysts in coverage, three rate Palantir stock "hold" or worse, versus just one that says "strong buy."

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