Insider Trading Report: Palantir Technologies (PLTR)

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  • Ark Invest ETF, the top-performing tech fund of the past year, recently released its latest holdings. The fund picked up 497,100 shares of Palantir Technologies (PLTR), increasing its stake to 1.93 million shares.

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  • The ETF has picked up a number of interested traders and investors, given the fund’s incredible performance in 2020, led by the fund’s largest holdings in companies such as Tesla Motors (TSLA) and Grayscale Bitcoin Trust (GBTC).

    Ark has an excellent long-term track record, but last year’s shoot-out-the-lights performance has turned the long-running fund into an overnight sensation. The fund’s purchase of big data giant Palantir may add to its returns.

    Palantir shares have been in a holding pattern for nearly two months now, trading in the mid-$20 range. While the news of the Ark buy gave shares a pop, they still haven’t closed over $28, a key closing price for shares to move higher. With technical indicators moving out of overbought territory, the stock has now had a long pause to move higher.

    Action to take: The May 2021 $30 calls are a reasonable bet. If shares break higher, they may jump much higher after hitting the old highs in the low $30 range. That could easily move this option trade in-the-money.

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  • Last trading for about $5.25, it’s less expensive than owning shares, but if shares continue in their sideways pattern, the option does stand the risk of gradually losing its value over time.