Trader Suggests Potential Bullish Options Strategies Involving Palantir Technologies (PLTR) Stock

Scott Bauer, appearing on Schwab Network yesterday, suggested potential bullish options strategies involving Palantir Technologies (PLTR) stock in the wake of its first-quarter earnings report.

Bauer is the CEO of the Prosper Trading Academy.

On the same segment, Rick Ducat, the network’s Lead Market Technician, analyzed the technical status of Palantir Technologies (PLTR) stock.

Bauer’s Potential Options Strategies

The trader is waiting for the shares to fall to the “$105 area” before pulling the trigger on his bullish options strategy.

“If the stock drops further, the opportunity is really there for some nice” gains, Bauer said.

The trader was considering buying calls that expire on May 30, and he was looking to employ a $110 to $120 call spread strategy while paying a premium of about $3. Alternatively, traders can sell puts on the name, he said.

Ducat’s Technical Analysis

Palantir Technologies (PLTR) tested the 21-day exponential moving average recently but did not quite fall to that level, Ducat said. Similarly, it never reached the key $105 level which was also cited by Bauer.

The stock’s Relative Strength Interval “was below overbought levels,” but the shares’ RSI stayed above 50, indicating that they retain “bullish momentum,” added the market technician.

Key upside levels include the “double top” level near $125 and the “plus 1 standard deviation channel just below $135,” noted Ducat.

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This article is originally published at Insider Monkey