To The Moon

Palantir has been one of the hottest stocks of the year, surging 247% in the past 12 months, fueled by the AI + defense narrative. Last month, it hit a high of $124 after an upbeat earnings report.

But fast forward a few weeks—PLTR has pulled back over 30% from its all-time high amid growing concerns over the AI market. So, did investors capitalize on this volatility? And how can traders turn market swings into profit?

🎉 Huge congrats to @刘德华Andylau for securing a 935% profit on a PLTR PUT!

🎉 Shoutout to @Loyster for an insane $2578 profit on a PLTR PUT!

🎉 Massive win for @WJ77 with $3496 gains on a PLTR CALL!

Let’s break down how traders are leveraging high volatility to maximize returns:

⚡ 1. Buying Puts – Profit from Downside or Hedge Positions

Best for:
✔ You expect PLTR to drop further and want to amplify gains.
✔ You hold PLTR shares and want to hedge against a pullback.

Strategy:
🔹 High volatility = Higher implied volatility (IV) = Higher option premiums.
🔹 Buying PUTS is expensive but can generate outsized gains if the stock drops quickly.
🔹 Ideal for short-term traders looking to profit from post-earnings volatility.

⚡ 2. Selling Calls – Hedge Holdings or Collect Premiums

Best for:
✔ You hold PLTR but expect limited upside and want extra income.
✔ You don’t own PLTR but want to capitalize on high IV by selling premiums.

Strategy:
🔹 Elevated IV means higher call premiums, making this a great time to sell calls.
🔹 If PLTR stays flat or drops, calls lose value, and you profit from time decay.
🔹 Risk: If PLTR spikes, your calls might be exercised, requiring you to deliver shares (or face large losses if you sold naked calls).

⚡ 3. The Collar Strategy – Protect Gains While Reducing Costs

If you own PLTR but want downside protection, a collar strategy helps balance risk:
✅ Buy a put to protect against declines.
✅ Sell a call to reduce hedging costs.

This strategy works well in high-volatility periods post-earnings when markets are still adjusting.

📉 Why is PLTR Dropping?

PLTR’s recent dip is part of a broader AI market pullback. Key concerns:
🚨 Microsoft potentially cutting AI spending spooked investors.
🚨 U.S. defense budget cuts could impact PLTR’s government contracts.
🚨 CEO Alex Karp’s planned stock sale raised eyebrows.

After peaking at $124 in February, PLTR is now back around $80. The hype-fueled post-earnings rally has fully retraced, and valuation remains a concern:
📊 PE Ratio: 72.5x
📊 Forward PE: 179.8x
📊 PEG Ratio: 3.6x (One of the priciest AI stocks!)

What do you think—Is PLTR fairly valued now, or does it have more room to drop? 🧐

PLTR investors, what’s your next move? 💬⬇

🧭 Share positions: