PLTR Options Signal Bullish Shift as Shorts Build

Palantir's put-call ratio just hit its lowest level in two weeks. That's the headline here — options traders are tilting bullish even as short sellers pile in.

Options Traders Diverge From Short Sellers

The PCR dropped to 0.997 on May 12. That's a z-score of -2.16 against the 20-day mean of 1.073. In plain terms: call buying is dominating at a statistically unusual level. The 52-week PCR range runs from 0.61 to 1.16, so this reading sits in the lower third — meaningfully call-skewed but not at extremes.

Short sellers are moving the other direction. SI hit 2.69% of free float on May 11 — a 15.3% weekly gain and 21.6% rise over the past month. In share terms, that's roughly 61.4 million shares short. The 30-day build has been steady, accelerating sharply in the past week.

The contrast is clear. Shorts are building. Options traders are buying calls. Both camps are adding conviction at the same time.

Borrow Market Whipsaws

Cost to borrow has been volatile. CTB spiked to 0.48% on May 8 — an 81% weekly jump — before pulling back to 0.39% by May 11. That reversal signals demand for borrows briefly spiked, then eased. Availability remains ample, consistent with a lending market that can still accommodate new short positions without stress.

The ORTEX short score sits at 31, up from 29.7 two weeks ago. Still moderate, but trending higher as the SI build accelerates.

Analysts Split on the Name

Argus Research upgraded PLTR to Buy (target: $190) on May 6. Citigroup raised its target to $225 the same day. Wedbush holds at Outperform with a $230 target. On the other side, RBC Capital reiterates Underperform with a $90 target — a near-35% discount to current levels. DA Davidson cut its target to $165 from $180.

The consensus sits at Hold with a mean target of $185. At $136, that implies roughly 36% upside to the average — but that average masks a wide dispersion of views.

Earnings land June 3. The last print sent the stock down 5.7% in one day. That event is likely shaping both the short build and the options positioning.

Data Summary

• Short interest: 2.69% of free float, +15.3% week-on-week, +21.6% month-on-month
• Put-call ratio: 0.997 (z-score: -2.16 vs. 20-day mean); lowest in two weeks
• Cost to borrow: 0.39% (peaked at 0.48% on May 8)
• ORTEX short score: 31.0, up from 29.7 two weeks ago
• Next earnings: June 3
• EPS momentum (30d): 90th percentile rank