This article first appeared on GuruFocus.
Palantir Technologies (NASDAQ:PLTR) heads into its first-quarter report with traders focused less on the results and more on market positioning, which could leave the stock vulnerable after the numbers.
Analysts expect Palantir to report earnings of 28 cents a share, more than double from a year earlier, on revenue of $1.54 billion.
Options traders are pricing in a move of about 9% after the release, implying the shares could swing sharply in either direction from Friday’s close.
Palantir’s options market appears heavily tilted toward call buyers, with implied volatility near 90%. That setup may pressure the stock after earnings, as option premiums often contract quickly once event risk passes.
The analysis also pointed to technical resistance between $150 and $160, with support near $130. If Palantir fails to break above that range, dealer hedging flows and profit-taking could add selling pressure and pull the stock lower.