Unprecedented Options Activity Signals High-Stakes Bets on Palantir

Palantir Technologies is witnessing a massive surge in options trading. This activity points to major investor interest in the data analytics firm. The trading frenzy highlights the divided market sentiment surrounding the company’s future.

According to data from Benzinga, 62 extraordinary options trades were placed on Palantir in a single day. A significant 53% of these trades displayed a bullish outlook. This indicates that large investors are positioning for a potential continued rise in the stock price.

Breaking Down the Bullish Bets

The volume and scale of these trades are notable. Over the past month, call options representing bets on a price increase totaled over $6 million. Put options, signaling bearish sentiment, amounted to $2.3 million.

The strike prices targeted by traders were incredibly wide-ranging. They spanned from $20 all the way up to $350. This shows both extreme optimism and cautious hedging strategies are at play. One large bullish trade at a $20 strike price was valued at $1.4 million.

AI-Driven Growth Fuels the Frenzy

This options surge is not happening in a vacuum. It coincides with Palantir’s explosive financial performance. The company’s stock price has soared more than 150% over the past year, vastly outpacing the broader market.

Palantir’s revenue growth has accelerated dramatically. Its Q3 2025 revenue grew 63% year-over-year. The commercial segment saw an impressive 73% growth. This performance is largely driven by demand for its artificial intelligence platforms.

Valuation Concerns and International Challenges

Despite the optimism, significant headwinds remain. The company’s valuation has become a central point of debate. Palantir now trades at nearly 154 times next year’s earnings, a figure that alarms some analysts.

Internationally, the picture is mixed. Palantir’s commercial revenue in Europe fell 5% in Q1 2025. CEO Alex Karp has been vocal about the challenges, stating that Europe “doesn’t get AI yet.” This regional weakness contrasts sharply with its 71% growth in U.S. commercial demand.

The intense options activity and stellar growth make Palantir a stock to watch. Yet its high valuation and international struggles present clear risks. Investors are betting big on whether the AI revolution will justify its current price.

Thought you’d like to know

What is causing the high volume of Palantir options trades?

The surge is driven by Palantir’s rapid revenue growth and prominent role in artificial intelligence. Large investors are making significant bets on the stock’s future direction. The wide range of strike prices reflects both extreme optimism and protective hedging.

How has Palantir’s financial performance been recently?

Palantir’s Q3 2025 revenue grew 63% year-over-year. Its commercial segment led with 73% growth. The company also maintains a strong balance sheet with $6.4 billion in cash and zero debt.

What are the main risks for Palantir investors?

The primary concern is the company’s high valuation at 154 times next year’s earnings. International commercial sales, particularly in Europe, have also declined. Any stumble in execution could significantly impact the stock price.

Why did Palantir’s European commercial revenue decrease?

European revenue fell 5% due to slower AI adoption and regulatory hurdles. The region shows a preference for homegrown tech solutions over American platforms. Political alignments have also created some resistance among European clients.

What is the analyst outlook for Palantir stock?

Analysts are deeply divided on Palantir’s future. Bullish price targets go as high as $255, while cautious analysts suggest $50. This wide disparity reflects the debate over its growth potential versus its valuation.