Options Corner: PLTR Pre-Earnings

Core Viewpoint - Palanteer is significantly outperforming both the broader S&P 500 and the XLK tech sector, indicating strong market performance and potential for continued growth [1][2]. Company Performance - Palanteer has shown a clear distinction as an outperformer in the software sector, while many conventional software companies may face disruption from AI advancements [2]. - Recent price activity indicates a breakdown below key support levels, with a notable level around 146-147 to watch going forward [4][6]. Technical Analysis - The stock has formed a symmetrical triangle pattern, with trend lines converging and a recent breach below a significant trend line [3]. - The Relative Strength Index (RSI) indicates that the stock is in the oversold territory, suggesting potential for a rebound [5]. - Long-term support is identified near the 251-day exponential moving average at approximately 145, while trading boundaries are established around 55 and 140 [6][7]. Expected Market Movement - The expected price movement for Palanteer leading up to February 20th is projected to be plus or minus 13.7%, with resistance near 168 and a low point around 130 [8][9]. Options Strategy - A neutral to bullish options strategy is suggested, involving selling an out-of-the-money 140 strike put while buying a 130 put to define risk, with a potential credit of approximately 270 [10][12][13]. - The strategy has a 61% probability of success, with a break-even point at 137.30, which is about 8.5% below the current share price [14][15].