PLTR wheel watch: $110 put leaves an 18.2% cushion
The August 28 $110 put closed at a $2.47 midpoint and an 18.2% breakeven cushion. Earnings arrive August 3 inside the contract, so this after-close quote must be re-priced at the next open.
YieldCove Desk
3 min read
PLTR regular close · Jul. 27
$131.53 · +7.00%
RSI(14)
52.6 · neutral
Put IV vs 3-month norm
68.75% vs ~54.2%–54.7%
Time to expiry
32 DTE
Reference credit
$2.47 per share
Annualized comparison
25.6%
The setup in 30 seconds
Palantir builds software that joins scattered data and helps government and commercial teams run analytics and artificial-intelligence workflows. PLTR closed the July 27 regular session at $131.53, up 7.00%. This educational setup studies the August 28 $110 cash-secured put, with 32 days to expiry (DTE) and delta near 0.161. The final delayed market was $2.43 bid / $2.51 ask, a $2.47 midpoint. That reference credit puts breakeven at $107.53, or 18.2% below the regular close. The original morning entry window ended at 10:30 a.m. ET; markets are now closed, so this is not an executable quote. Rebuild the ticket in a broker and re-price at the next open.
New to cash-secured puts?
Selling one put creates an obligation to buy 100 shares at the strike if assigned. “Cash-secured” means reserving the full $11,000 strike collateral instead of borrowing. The credit lowers the effective share cost, but PLTR can still fall far below breakeven.
The trade
| Item | Reference |
|---|---|
| Ticker / strategy | PLTR cash-secured put |
| Contract | August 28, 2026 $110 put |
| DTE / delta | 32 DTE / ~0.161 |
| Final delayed market | $2.43 bid / $2.51 ask · 3.24% spread |
| Entry method | $2.45–$2.50 limit only · $245–$250 per contract · no market orders |
| Liquidity | 934 open interest / 122 volume · matched on Cboe and Nasdaq |
| Cash reserved | $11,000 |
| Breakeven | $107.53 · 18.2% below $131.53 |
| Max return | 2.25% in 32 days · ~25.6% annualized comparison |
| Maximum loss | $10,753 if PLTR falls to $0, less fees |
The screen chose the $110 line over the qualifying $115 put because earnings arrive inside the contract. The lower strike keeps delta at the bottom of the allowed band and leaves more room beneath the final close. In plain terms: the richer premium is payment for real event risk, not free income.
Why this stock, why now
Technicals. RSI(14) finished at 52.6, a neutral reading. PLTR closed above its $128.83 20-day average, almost level with its $131.64 50-day average, and below its $154.04 200-day average. Volume was 36.57 million, or 0.97× its 20-day average. The strike sits just above a $106.37–$110 support zone anchored by the 52-week low. In plain terms: momentum recovered, but the long-term trend has not fully healed and support below the strike is thin.
Valuation and growth. Current providers disagree on the exact forward multiple, so we keep the range: PLTR is about 63.2×–77.4× forward earnings. SNOW is roughly 100.4×–126.8× and DDOG 88.4×–102.3× on the same two providers. Palantir’s first-quarter revenue was $1.633 billion, up 84.7% from $883.9 million a year earlier. In plain terms: growth is unusually fast, but a high multiple still leaves little room for a weak outlook.
Income is elevated because the calendar is risky
The $110 put carried 68.75% IV, versus about 54.2%–54.7% across two three-month measures. Barchart placed weighted IV in the 94th percentile of its three-month range. In plain terms: premium is above its recent norm because traders expect a larger move around earnings.
Calendar and catalysts. Palantir is scheduled to report on August 3 after the close, inside the August 28 contract. The Federal Reserve meets July 28–29, adding a macro event before earnings. A current 72-hour scan found earnings previews and analyst commentary, but no new issuer release or SEC filing that changed the setup; no unconfirmed target is used here. Palantir has no listed ex-dividend date. In plain terms: the earnings gap matters far more than a small day-to-day option-price change.
The exit plan
| Trigger | Educational plan |
|---|---|
| Take profit | Buy back near $1.24, about 50% of the $2.47 reference credit |
| Time exit | Close or roll around 14–21 DTE if the risk remains unresolved |
| Roll trigger | If PLTR closes below $110 with 21+ DTE, consider rolling out and down only for a net credit |
| Assignment path | Accept only if planned: own 100 shares at a $107.53 effective basis, then reassess covered calls |
These are decision rules, not predictions. A next-open limit could be far from the final midpoint after news or overnight movement; if the spread widens beyond 8% or the return drops below the screen threshold, the setup no longer qualifies.
What would invalidate this
Do not treat the old quote as live. The setup fails if the next-open chain no longer shows OI of at least 500 and a spread of 8% or less, if PLTR breaks below $110 before entry, or if new earnings information changes assignment comfort. A gap through $106.37 would remove the nearby support case.
What could go wrong
- Earnings gap: August 3 results or guidance could send PLTR below $110 before there is time to adjust, creating a large unrealized loss.
- Valuation reset: a forward P/E range of 63.2×–77.4× still assumes strong growth; slower demand could compress the multiple even if revenue rises.
- Quote decay: after-close prices are stale for execution; lower IV or a wider next-open spread can erase the apparent return before an order is considered.
Beginner corner
DTE means days to expiry. Delta estimates price sensitivity and roughly frames assignment odds, but it is not a probability guarantee. IV is implied volatility, the market’s estimate of future movement. Breakeven is strike minus credit. Assignment means buying 100 shares per contract at the strike.
Sources
- [1]PLTR final quote and market status — Nasdaq · Accessed 2026-07-27 · Tier 1
- [2]PLTR historical prices — Nasdaq · Accessed 2026-07-27 · Tier 1
- [3]PLTR delayed options and Greeks — Cboe · Accessed 2026-07-27 · Tier 1
- [4]PLTR August option chain — Nasdaq · Accessed 2026-07-27 · Tier 1
- [5]PLTR current and three-month option volatility — Barchart · Accessed 2026-07-27 · Tier 3
- [6]PLTR 30-day implied-volatility history — AlphaQuery · Accessed 2026-07-27 · Tier 3
- [7]PLTR valuation statistics — StockAnalysis · Accessed 2026-07-27 · Tier 3
- [8]PLTR market and valuation snapshot — Finviz · Accessed 2026-07-27 · Tier 3
- [9]SNOW valuation statistics — StockAnalysis · Accessed 2026-07-27 · Tier 3
- [10]SNOW market and valuation snapshot — Finviz · Accessed 2026-07-27 · Tier 3
- [11]DDOG valuation statistics — StockAnalysis · Accessed 2026-07-27 · Tier 3
- [12]DDOG market and valuation snapshot — Finviz · Accessed 2026-07-27 · Tier 3
- [13]Palantir SEC company facts — SEC EDGAR · Accessed 2026-07-27 · Tier 1
- [14]PLTR earnings date — Nasdaq · Accessed 2026-07-27 · Tier 2
- [15]2026 FOMC meeting calendar — Federal Reserve · Accessed 2026-07-27 · Tier 1
- [16]Former Palantir headquarters building photograph — Wikimedia Commons · Accessed 2026-07-27 · Tier 4
This content is for informational and educational purposes only and is not financial advice. Options involve risk and are not suitable for every investor. Do your own research before trading.
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