Put Traders Target Palantir Technologies Stock Selloff

Core Insights - Palantir Technologies Inc (NASDAQ:PLTR) stock has experienced a significant decline, down 7.5% to $145.98, marking its sixth consecutive daily drop and is now 25% below its record high of $190 reached on August 12, although it remains up 89.5% year-to-date [1] Options Activity - There has been a notable increase in put options trading, with 658,000 puts exchanged today, which is triple the average intraday volume, compared to 563,000 calls, indicating bearish sentiment [2] - The most popular contract is the weekly 8/22 140-strike put, with new positions being opened, reflecting a shift towards protective strategies among investors [2] - Over the past two weeks, puts have gained popularity, with PLTR's 10-day put/call ratio at 1.21, the highest compared to all readings from the past year, suggesting increased bearish sentiment [3] - Options are currently reasonably priced, with PLTR's Schaeffer's Volatility Index (SVI) at 55%, ranking in the low 19th percentile of its annual range, indicating low volatility expectations among options traders [3]