It’s not just neoclouds and hyperscalers that investors are concerned about.
Options data shows a surge in bearish trades in anticipation of both Palantir and apple Monday afternoon income. These two stocks have had different trajectories than the broader AI trade. Apple in particular is doing almost the opposite of AI trading. Nasdaq 100 Index – But that doesn’t stop speculators from betting on a post-earnings reversal.
Of the 620,000 options traded on Apple through midday, 385,000 were puts and at least 113,000 puts were likely initiated by buyers, compared to just 64,000 call purchases, according to Cboe LiveVol data. At the same time, put prices hit the 86th percentile last year, while call prices hit the 51st percentile, according to Nations Index data.
Apple since the beginning of the year
Apple stock is up 25% this year and currently has a correlation coefficient of -0.65 with the Nasdaq 100, according to ThinkOrSwim data. LiveVol says options imply a stock price volatility of just under 4%, compared to an average post-earnings volatility of 2.5% over the past two years.
Palantir’s option flow is also trending bearish, with more puts trading than calls based on volume, with put prices at the 97th percentile over the past year, according to Nations Index. Calls are also expensive, but not too expensive, being in the 76th percentile.
Traders need to brace for a big move from Palantir. Market makers are pricing in an implied move of 11.5%, compared to an average of 10% over the past two years. Shares rose nearly 30% after the last report, but were sold off after May’s earnings.
The biggest trade on Palantir on Monday was when someone opened a new position and bought about 750 in-the-money 250-strike puts expiring in mid-February for a total of $5.1 million.
