Trader Recommends Palantir $120/$95 Put Spread for $6.50 After Tesla Short Gains 2x
Updated
Updated · CNBC · Jul 24
Trader Recommends Palantir $120/$95 Put Spread for $6.50 After Tesla Short Gains 2x
3 articles · Updated · CNBC · Jul 24
Summary
$6.50 is the suggested entry for a Palantir Aug. 21 $120/$95 put spread, with the trader arguing the stock is vulnerable ahead of its Aug. 3 earnings report.
Palantir still trades at a premium while first-quarter commercial backlog growth slowed to 12% from 21% in late 2025, and the trader sees tougher LLM competition, direct enterprise adoption and international limits as risks.
The setup follows a successful Tesla bearish trade: the Aug. 360/330 put spread is being closed near $23, more than double the entry, after Tesla fell about 14.5% post-earnings.
That Tesla drop came despite $28.2 billion in revenue, as adjusted EPS missed estimates at 34 cents versus 50 cents, operating margin shrank to 1.4% and free cash flow turned negative.
For Palantir, the trader says options look usable despite 65% implied volatility because the short $95 put offsets premium; maximum profit is the $25 spread width minus the debit if shares finish at or below $95.