Palantir Stock Trade Idea (Short)

Palantir Stock Trade Idea – Short setup using options flow and price contextBias: Bearish tilt for a tactical fade of strengthThis article is for education at investingLive.com. It is not investment advice. Do your own research and make your own trading and investing decisions.Why a bearish lean todayOptions flowNet option delta volume: -43,174 shares equivalent. Slight on-balance preference for downside or hedging.Bearish pressure vs bullish: -2,234,165 vs +2,190,991 shares equivalent. Tilt is modest but negative.IV context: 30-day IV 69.9 and rising with IV30 rank 76%. Elevated and rising IV often aligns with demand for protection and pullback risk.Where bears transact: Bearish weighted average price 180.66 sits close to bullish 180.88 and near VWAP 180.69. With spot near 180.5 pre market, sellers have been leaning into strength around 180 to 181.Price location and performanceDay range: 176.02 – 184.35. Our average entry sits near the top of the intraday band.52-week range: 40.90 – 190.00. Average entry is ~3.87% below the 52-week high and ~95% up the 52-week band.Momentum cooling at the margin: 1W -1.74% vs strong 1M +5.91%, 3M +18.51%, YTD +135.72%, 1Y +313.16%. After a major run, short-term softness near prior highs supports a tactical fade.Trade plan for PLTR Stock ShortInstrument: PLTR shares or your chosen derived product
Premarket context: Quote ~$180.50 (about +0.5% vs yesterday close $179.62). Premarket orders must be limit orders.Entries (equal size)1st Sell $181.672nd Sell $182.643rd Sell $183.62Average entry: $182.64
Stop: $186.59Risk per share: $3.95 (2.16% of avg entry)Take profitsTP1: $178.46 → +$4.18/share → +2.29% → 1.06× RTP2: $176.43 → +$6.21/share → +3.40% → 1.57× RTP3: $173.29 → +$9.35/share → +5.12% → 2.37× RTP4: $171.17 → +$11.47/share → +6.28% → 2.91× RTP5: $165.17 → +$17.47/share → +9.57% → 4.43× RBlended reward (simple average of the 5 targets): ~2.47× R and +5.33%.Management rules for Palantir TradersDefault rule at investingLive: when TP1 hits, move stop to entry and cancel any unfilled entry orders.Take about 20% off at TP1 and leave most of the size for deeper targets.All entries are equal size and all take profits are equal size unless you choose otherwise.Thesis in one lineOptions flow leans modestly bearish with elevated and rising IV while price is perched near the top of its daily and 52-week ranges, so fading strength into 181.7 to 183.6 with a tight, defined risk at 186.59 offers an attractive tactical R profile.Education and risk notice: Markets are risky. None of the above is a promise of results. This is educational information only. Always size positions prudently, use your own judgment, and trade at your own risk.
This article was written by Itai Levitan at investinglive.com.

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💡 DMK Insight

The bearish sentiment surrounding Palantir suggests that investors are increasingly wary of its recent price movements, particularly in light of the options flow indicating a tactical fade. This highlights a growing concern about the stock's ability to maintain momentum, especially as market conditions remain volatile. Traders may note that such setups often precede significant corrections, signaling a potential shift in market confidence that could impact broader tech sector sentiment.