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13 Million in Calls Bet Against Michael Burry's Palantir Crash Call

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ticker lesson

Breakdown

0:04PALT· ticker

Palanteer — bearish vs bullish bets

  • Palanteer trading at 16598
  • Market cap around $400 billion
  • Michael Bur predicts $42 share price
  • 75% downside from current price
1:54PALT· ticker

Palanteer — bullish call buyer

  • Buyer of 13.58 million calls
  • Requires stock to push into new all-time highs
  • Break even at $23060
  • Odds of payout about 1 in 3
3:45PALT· ticker

Palanteer — call strike details

  • December 17th, 2027 190 call
  • 3,150 contracts traded
  • Break even at $23060
  • Volume past 4,100
5:24PALT· ticker

Palanteer — smaller call details

  • January 21st, 498 days 250 call
  • 300 contracts put in
  • Break even at $277.30
  • Odds of payout 1 in 6
5:25PALT· ticker

Palanteer — company fundamentals

  • Revenue grew 93% last quarter
  • Commercial revenue up 149%
  • Net dollar retention 157%
  • Adjusted free cash flow margin 63%
5:26PALT· ticker

Palanteer — valuation and guidance

  • Raised full-year guidance to 8.154 billion
  • Average street targets $193.88
  • Targets range from $80 to $255
  • All-time high $20752
5:27lesson

Signal versus noise in options trade

  • Timing and duration are the signal
  • Noise is the bearish call on AI bubble
  • 75% decline prediction
  • Market treating AI multiples like regular software

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