Core Viewpoint - Palantir Technologies (PLTR) shows potential for bullish option traders, particularly through a bull put spread strategy, as it recently bounced off its 50-day moving average [1][7]. Summary by Sections Bull Put Spread Strategy - A bull put spread is a defined-risk strategy that profits if Palantir stock trades sideways or higher, and sometimes even if it trades slightly lower [2]. - The strategy involves selling a higher strike put option while buying a lower strike put option in the same expiration cycle, allowing the trader to receive an option premium [2]. Stock Performance and Setup - Palantir's stock recently experienced a shakeout below its 50-day line but found support on September 5, with a low around 148 [3]. - The current 50-day moving average stands at 158, serving as a critical support level [3]. Trade Details - Traders anticipating that Palantir will remain above its 50-day line for the next two weeks could sell a September 26 bull put spread between 155 and 150 for approximately 90 cents per share, generating about $90 in premium with a maximum risk of $410 [4]. - If the spread expires worthless, it would yield a 22% return in two weeks, provided Palantir stock is above 155 at expiration [5]. - The break-even point for this trade is calculated at 154.10, which is 7.6% below the current price of 166.80 [5]. Risk Management - It is advisable to set a stop-loss if the stock falls below its 50-day line or if the spread increases in value from 90 cents to $1.80, to mitigate potential losses [6]. Market Environment - The bull put spread on Palantir presents an attractive opportunity for income generation with defined risk parameters in the current market environment [7]. - Palantir holds a Composite Rating of 98 out of a best-possible 99, with an Earnings Per Share Rating and Relative Strength Rating also at 98, ranking first in its group according to Investor's Business Daily [7].