A Palantir options trade to play a potential buying opportunity while defining risk

varam3 hours ago03 mins mins

Is Anthrophic’s loss Palantir’s gain? The ongoing and public dispute between Anthropic and the U.S. Department of Defense (DoD) under Secretary Pete Hegseth centers on Anthropic’s refusal to remove safeguards from its AI model, Claude, for unrestricted military use. As Palantir might obtain more government contracts, I want to use options to own this high beta stock in PLTR. PLTR YTD mountain PLTR year to date With Anthropic potentially out, the DoD is reportedly negotiating with alternatives like OpenAI and Google to fill the gap on classified networks. Palantir could integrate these models into its platforms, expanding its role as the core infrastructure provider for the U.S. government. The deadline hasn’t passed yet, and negotiations could still resolve this very public dispute. However, Palantir’s future growth is driven more by commercial expansion than government contracts alone — but a win here would reinforce its crown as King of defense AI. Palantir CEO Alex Karp has long emphasized unwavering support for U.S. military applications which contrasts with Anthropic’s stance, positioning Palantir as a buying opportunity. I want to use a multi-legged debit spread to define my risk as the AI repricing may not be over. PLTR is also currently in a drawdown and seemingly on sale. I want to initially sell a put spread as I have to define the downside exposure if everything AI continues its massive repricing and soured sentiment. An investor will collect premium on that put spread sale which will help finance some of the premium need to buy an upside call in PLTR. There are three legs to this spread. The trade Sold the 3/20/2026 $130 PLTR put for $4.50 Bought the 3/20/2026 $120 PLTR put for $2.00 Bought the 3/20/2026 $140 PLTR call for $6.00 This trade will cost an investor $3.50 or $350 per one spread. Downside risk is defined and upside capture is unlimited above $143.50 in PLTR. PLTR was trading around $136.50 when this trade was executed. DISCLOSURES: Kilburg owns this spread. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.