Palantir Leads S&P 500 in 2025 -- Traders Turn to Covered Call ETF

July 7 - Palantir Technologies PLTR has outstripped Coca?Cola KO, IBM IBM, GE Aerospace GE and UnitedHealth Group UNH to become one of the largest?by?market?cap names, and it leads the S&P 500 year?to?date through Independence Day.

Despite its rally, the firm's chart shows signs of strain, prompting a recommendation to buy the YieldMax PLTR Option Income Strategy ETF (PLTY), which sells covered calls on PLTR to harvest elevated premiums.

PLTR traded at roughly 49 times forward sales estimates even after the selloff that followed its strong Q1 report adjusted EPS climbed 60% and revenue rose 40% year?on?year, yet shares slid about 12% on the back of profit?taking. Analysts now see high implied volatility, with the at?the?money straddle pricing in a 10.7% swing ahead of an anticipated Aug. 4 earnings release.

PLTY currently yields an annualized 69% from option premiums, and its strategy aims to cap upside while delivering steady income, ideal in a sideways or modestly rising market. Technical indicators on PLTR point to bearish RSI divergence and support near the 50?day moving average, with a 38.2% Fibonacci retracement level around $117 offering a potential entry.

All told, the combination of premium income and strategic cover makes PLTY an attractive play for those seeking yield amid PLTR's lofty valuation.

Is PLTR Stock Still a Buy?

Based on the one year price targets offered by 20 analysts, the average target price for Palantir Technologies Inc is $104.51 with a high estimate of $155.00 and a low estimate of $40.00. The average target implies a downside of -22.22% from the current price of $134.36.