Option Focus | Palantir’s $3.91 Million Bullish Put Spread and $3.48 Million OTM Call Buy Signal Strong Upside Conviction

Option Witch07:01

Palantir Technologies Inc. closed at $158.43, down 2.60% from the prior session.

Unusual options activity in PLTR tilted heavily bullish, with two blockbuster trades dominating the tape. The session’s largest structures were a $3.91 million bullish put spread and a $3.48 million out-of-the-money call buy, both signaling strong conviction that the stock will remain resilient and move materially higher over a multi-year horizon.

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Options Indicators

PLTR’s implied volatility is 53.84%, while its IV percentile stands at 22.31%, which indicates volatility is on the low side and options are currently priced relatively cheaply versus their own historical range. With the IV/HV ratio at 0.52, implied volatility is also running below realized volatility, suggesting the market is not assigning an especially rich premium to future movement at the moment. The Call/Put volume ratio is 1.50.

Large Trades

A bullish put spread worth $3.91 million was the largest highlighted trade, built by selling 1,620 October 16, 2026 $175.00 puts and buying 1,620 September 18, 2026 $125.00 puts. Using the provided legs, this structure brought in $3.71 million from the short put leg and spent $0.19 million on the long put leg, leaving a net premium received of $3.52 million. With PLTR referenced at $158.43, the short $175.00 put was in the money while the long $125.00 put was out of the money. Strategically, this is a bullish income-oriented position that also defines downside risk through the purchased lower-strike put, suggesting the trader is willing to take upside-to-stable exposure while collecting premium rather than chasing outright call leverage.

A call buy worth $3.48 million was the other standout trade, involving the purchase of 1,500 December 17, 2027 $250.00 calls. With the stock at $158.43, the $250.00 strike was out of the money, making this a clear bullish directional bet on substantial upside over a long-dated horizon. The long-call structure limits risk to the premium paid while preserving significant convex upside if PLTR rallies sharply, so the trade points to aggressive upside speculation rather than hedging or income generation.

Overall, the large-trade flow was clearly bullish. The sentiment summary shows bullish activity decisively outweighing bearish activity, and the character of the trades reinforces that view: the biggest position was a premium-collecting bullish put spread, while the second-largest was a long-dated out-of-the-money call purchase expressing strong upside conviction. Even though there was some bearish flow elsewhere, the dominant capital was aligned with traders expecting PLTR to remain resilient and potentially move materially higher over time.

Strategy Reference

For a low assignment probability, sellers could consider the 30-delta put, which currently sits near the $125.00 strike, or deploy a put credit spread using the $125.00/$120.00 strikes to define risk and reduce margin requirements.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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