Pentagon Picks Palantir, Stock Surges

Palantir Technologies Inc (NASDAQ:PLTR) stock is up 5.8% to trade at $159.41 at last glance, after Reuters reported the Pentagon will use the company's Maven artificial intelligence platform for weapons targeting as its core military AI system, with the new designation set go into effect on Sept. 30.

PLTR sports a 74.3% year-over-year lead, but so far in 2026 has shed nearly 11%. The stock has been stuck under $160 since late January, but has bounced off its February pullback to its lowest level since June.

Options traders have been much more optimistic than usual, per the stock's 10-day put/call volume ratio of 1.97 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all other annual readings.

Options look like a solid route for those looking to bet on PLTR's next moves. This is per the equity's Schaeffer's Volatility Index (SVI) of 58% that sits higher than 51% of readings from the last 12 months. This means options traders are now pricing in relatively low volatility expectations.