Shares of Palantir Technologies Inc (NASDAQ:PLTR) are 4.3% higher to trade at $131.17 this morning, after D.A. Davidson upgraded the controversial software stock to "buy" from "neutral. The firm cited an attractive entry point for the bull note. Heading into today, 10 of the 29 brokerages covering PLTR sport a "hold" or worse rating.
PLTR has underperformed in 2026, down 26% and is now trying to bounce off its June 25, 52-week low of $106.37. The shares -- heading for a fifth-straight win -- are testing $130, home to their descending 50-day moving average.
Call traders have been circling, per the stock's 50-day call/put volume ratio of 2.20 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 98th percentile of its annual range. This is echoed by PLTR's Schaeffer's put/call open interest ratio (SOIR) of 0.72, which ranks higher than just 2% of readings from the past year.
Even today bulls are on board, with 169,000 call contracts across the tape so far. This is triple the average intraday rate, with the most attention seen at the weekly 7/2 132- and 133-strike calls, where sell-to-open activity has been detected.
These options are affordably priced as well. Specifically, Palantir stock's Schaeffer’s Volatility Index (SVI) of 51% stands in the 19th percentile of its annual range.
