PLTR reports earnings today after the bell while the Dec 20th $37C is flirting with a 50% trailing stop. Based on past performance post-earnings, if exiting pursuant to the stop it may be an idea to hang unto a small position, just in case. PLTR (with last three earnings) Absent a negative earnings surprise, price is targeting $50 over the next 60-90 days. Even with such a surprise, the target stands, it just may take a bit longer. In addition, the shorter-term divergence indicator flashed green last Friday, stacking the deck for a pop upwards in the days ahead: PLTR - Divergence Signals Linked below is a touch of fundamental analysis from Bloomberg to further confuse matters, a mix of bearish and bullish takes what to look for in the earnings report: Palantir earnings provide litmus test for 140% AI-fueled rally Trade Management PRO Service The Dec 20th $37C has come perilously close to triggering its 50% trailing stop and may have in individual cases. Nonetheless, with earnings and other market moving news about to hit, hanging onto at least a small position (if stopped out) makes sense. Note the stellar gains by simply buying and rolling over YTD. Dangerous, but rewarding. Premium Service If holding both, exit the $40C if its 50% trailing stop is hit, if holding only that call, exit at least half if the stop gets hit. This position has now dropped perilously close to 50% from it's top tick, which would trigger an exit based on strict application of a 50% trailing stop. Throw into the mix earnings, the election, the FOMC meeting on Thursday and of course six or seven swing states. We have an excellent gain holding this call of the past six weeks or so, so may be the best bet is to take half off now, and let half ride into earnings (adjust "half" as per individual risk:reward profile). In any case, I expect to be trading PLTR well into next year and beyond, so whatever comes of this trade, there will be more coming.
