Palantir closed at $209.05, up 5.17%.

Options flow showed a distinct split in institutional conviction, dominated by a $5.89 million long-dated call purchase and a $714,000 bear put spread. The bullish call buying points to strong upside expectations, while the bearish spread reflects simultaneous downside hedging or speculative positioning, leaving the overall large-trade read cautiously bullish rather than one-sided.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Palantir’s implied volatility stands at 61.05%, while its IV percentile is 57.37%, which places current volatility in a neutral zone rather than at an extreme. In other words, options are not especially cheap or especially expensive relative to their own historical range, although the IV/HV ratio of 2.68 still shows the options market is pricing in substantially more forward volatility than the stock has recently realized. This suggests premiums are carrying a meaningful expectation of future movement, but not at a level that would classify current pricing as stretched.

The Call/Put volume ratio is 1.64.

Large Trades

A bearish put spread with a net credit of $714,000 stood out as one of the session’s key complex trades. The structure involved selling the January 21, 2028 $130.00 put and buying the November 20, 2026 $180.00 put, both in 1,200 contracts, and it was explicitly classified as a bear put spread with bearish sentiment. Because this is a spread strategy combining a short put and a long put, the correct way to gauge its size is by the provided net credit, not by adding the legs. The net credit indicates the trader collected premium upfront while positioning for downside, suggesting a bearish directional bet that also benefits from structuring efficiency rather than paying a large debit outright.

A call purchase worth $5.89 million was the single largest outright options trade in the displayed set, consisting of 1,400 contracts of the January 21, 2028 $250.00 call bought at an out-of-the-money strike. With PLTR referenced at $209.05, this long-dated upside call is a clear bullish expression, implying the buyer is seeking substantial upside participation over time while limiting risk to the premium paid. The far-dated tenor and out-of-the-money strike suggest a conviction-based directional bet on continued appreciation rather than a short-term hedge.

Overall, the large-trade flow leans slightly bullish, but the conviction is mixed rather than one-sided. The dominant bullish feature was the sizable long-dated $250.00 call purchase, which signals willingness to pay meaningful premium for upside exposure, while the bearish side was reinforced by put buying and bear put spreads that point to hedging or downside speculation. Taken together, institutional activity suggests the market still sees room for longer-term upside in PLTR, but that optimism is being tempered by meaningful protection or tactical bearish positioning, leaving the broader read as cautiously bullish rather than aggressively so.

Strategy Reference

For a low assignment probability, a seller could consider the 30-day $150.00 put, which sits roughly 28.25% below spot; for a capital-efficient alternative, a short call vertical using the $250.00/$270.00 strikes may reduce margin while still expressing cautious upside conviction.