Option Focus | Palantir Sees $118.93 Million Deep ITM Double-Long Call Combo Plus Put Sale, Signaling Strong Bullish Conviction

Option Witch
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Palantir closed at $200.50, down 0.23%.

Options flow showed a standout $118.93 million deep in-the-money double-long call combination, plus a $2.12 million out-of-the-money put sale. The dominant activity was aggressive premium outlay on upside calls, reinforced by a short put, signaling strong bullish conviction.

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Options Indicators

Palantir’s implied volatility stands at 65.54%, and with an IV percentile of 77.69%, current option volatility is in an elevated range, indicating that options are priced expensively relative to the stock’s own recent history. The IV/HV ratio of 2.15 further suggests implied volatility is running well above realized volatility, meaning the options market is embedding a substantially larger forward volatility expectation than what has recently been observed in the underlying.

The Call/Put volume ratio is 1.30.

Large Trades

A directional call-buying combination with a net debit of $118.93 million was the standout large trade, consisting of two call purchases at the same $35.00 strike but across different expirations, January 15, 2027 and October 16, 2026. This is a same-direction double-long call structure rather than a spread, so it reflects outright upside positioning with premium paid upfront, aimed at participating in further stock appreciation and potentially amplified volatility. With PLTR referenced at $200.50, both call legs are deeply in the money, which makes the structure behave more like high-delta bullish exposure while still retaining optionality across two maturities. Strategically, this trade signals a strong conviction that upside can persist over both the medium- and longer-term horizons.

A put sale worth $2.12 million was the other displayed large trade, involving the sale of the September 17, 2027 $155.00 put. With the stock at $200.50, that strike is out of the money, so the seller is expressing a moderately bullish to constructive view, effectively betting that PLTR will remain above $155.00 into expiration while collecting premium. The trade also suggests willingness to accumulate shares at a lower effective level if assigned, which is typical of investors comfortable with the underlying’s longer-term outlook. Overall, the bulk-order flow is clearly bullish: the dominant activity was aggressive premium outlay into deep-in-the-money long calls, reinforced by an out-of-the-money put sale, together indicating confidence in continued upside rather than defensive hedging or bearish positioning.

Strategy Reference

For a lower assignment-probability put sale, consider the September 2027 $100.00 strike, which sits roughly 50.12% below the spot and offers a wider cushion; for those wary of the margin required on the long calls, a $200.00/$250.00 bull call spread expiring October 2026 can express similar upside at a fraction of the net debit.

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