Palantir's 5.8% Share Price Gains Boost Appeal of Call Options: Options Chatter

$Palantir (PLTR.US)$'s 5.8% jump Monday boosted the appeal of its call options amid optimism over the growth prospects of the AI platform used by the U.S. government for critical defense and national security missions.

The total volume on call options that give their holder the right to buy Palantir shares reached 502,650 contracts Monday, up from 435,970 call options in the previous session and the 20-day average of 415,760 contracts. Put options, give their holder the right to sell the stock, had a volume of 299,970. The put call ratio of 0.61 is lower than the average over the past year of 0.75.

(To see Palantir's options chain, click here. For the options market page, click here.)

(ICYMI, read CoreWeave's 19% Slump is Boon For Speculators Betting Against Stock: Options Chatter)

Call options are gaining more appeal to investors and speculators after the U.S. and Israel launched a joint airstrike on Iran, killing Islamic Republic’s supreme leader, Ayatollah Ali Khamenei, and igniting a Middle East conflict.

"With the outbreak of the U.S. war in the Middle East, Palantir is exposed to a surge in demand for AI related to defense," Bloomberg Intelligence senior industry analyst Mandeep Singh wrote in a note Monday. "The company's Maven Smart System contract has expanded in the US Army over the past 12 months."

That system has helped sustain over 50% growth in Palantir's government segment, Singh said. "The use of Palantir's tools could get a boost across large enterprises that have a high supply-chain risk to the conflicts in the region," he said.

Government contracts accounted for almost 54% of Palantir's revenue in 2025. About 74% or $3.32 billion of its revenue last year came from the U.S. government and private enterprises.

The heaviest trading among contracts tied to Palantir were call options that give their holder the right to buy the stock at $150 by the end of the week, signaling optimism from buyers that the stock could climb from Monday's closing price of $145.17. Volume reached 44,220 contracts, 4.5X the open interest.

At current prices and volatility, a single-leg transaction involving those $150 call options have a profit probability of 25.4% for the buyer. The stock price would need to climb above the breakeven level of $151.81 for the buyer to make money from those options. If the stock price rises above that level, the maximum profit potential could be unlimited. If not, the maximum loss could be $181 per contract.

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Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.

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