Palantir Beat Earnings and Still Dropped.

Why It Matters

The analysis signals that Palantir’s earnings beat may have created a mispriced, short‑term sell‑off, offering a leveraged upside for investors willing to assume options risk.

Key Takeaways

• Palantir beat earnings yet shares fell sharply post‑release.
• Speaker sees market capitulation, signals bullish outlook on Palantir.
• Initiated 17‑delta long options, paying ~$1 daily for risk.
• Bought July call option, 73‑day horizon, $575 premium.
• Trade aims to capture upside despite short‑term price volatility.

Summary

The video discusses Palantir’s recent earnings beat, which paradoxically coincided with a noticeable drop in the stock price. The presenter frames this decline as a potential capitulation, suggesting that the market may be over‑reacting and creating a buying opportunity.

Key data points include the earnings beat itself, the stock’s slide from around $137 to the low $5‑range after the trade, and the presenter’s own options position: a 17‑delta long call purchased at $5.58, with a daily carry of roughly a dollar. He also outlines a longer‑dated convexity trade—a July call with 73 days to expiration costing $575 in premium.

Notable remarks such as “I shouldn’t say slightly bullish. It is bullish about 17 long deltas” highlight his confidence in the upside. He references a prior scalped trade that netted $100, using it as a benchmark for the current, more aggressive position.

If the capitulation narrative holds, the bullish delta and longer‑dated call could deliver outsized returns as Palantir’s fundamentals improve. However, the trade carries significant risk, reflected in the $575 premium and the need to manage time decay, making it a high‑convexity play suited for investors comfortable with options volatility.

Original Description

Options trading live when Palantir drops 5% after blowing out its earnings numbers. The market is up big but Palantir is getting no love, and that disconnect is the setup.

This is a convexity diagonal spread: buying the July call and selling a further out of the money June call for $575 in defined risk with 17 long deltas and nearly a dollar per day in theta. Watch the full Options Trades Today episode for the complete breakdown.

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