As Palantir Technologies Inc. (PLTR) prepares to release its first-quarter earnings, traders are focusing less on the actual performance and more on market positioning—which could expose the stock to downside risk following the announcement.

Analysts project that Palantir will report earnings per share of 28 cents, more than double the figure from the same period last year, with revenue reaching $1.54 billion.

Options traders anticipate a post-earnings stock movement of approximately 9%, suggesting the potential for significant price swings in either direction from Friday's closing level.

The options market for Palantir appears heavily skewed toward call buyers, with implied volatility hovering near 90%. This positioning could weigh on the stock after earnings, as option premiums tend to decline rapidly once event risk subsides.

The analysis also highlights technical resistance between $150 and $160, with support around $130. If Palantir fails to break above this range, dealer hedging and profit-taking could amplify selling pressure, potentially driving the stock lower.