A 40% Margin Of Safety On Palantir, Plus 12% Yield As You Wait

April 28th, 2026 by Trefis Team
PLTR: Palantir Technologies logo
PLTR
Palantir Technologies

Do you think Palanatir (PLTR) stock is a good long-term bet at current levels? What about at a 40% discount at about $85 per share? If you think that is a steal and have some cash ready to go, here is a trade.

12% annualized yield at 40% margin of safety by selling put options.

  • Sell a long-dated Put option expiring 3/19/2027, with a strike price of $85
  • Collect roughly $580 in premium per contract (each contract represents 100 shares)
  • That’s about 7.7% annualized yield on the $8,500 you’re setting aside for the possibility of buying the stock
  • This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 11.7%
  • And you give yourself a chance to buy PLTR stock at deep discounted price of $85
Image by Pexels from Pixabay

However, this is not the only stock strategy in town. Trefis High Quality Portfolio is a sophisticated framework designed to reduce stock-specific risk while giving upside exposure.

Possible Trade Outcomes: You Win Either Way

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Stock Price Outcome: What It Means For You

If PLTR stays above $85, you get to keep the full $580 premium – that is 6.8% extra income over the next 326 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash.

If PLTR closes below $85, you will be obligated to buy 100 shares at $85. But thanks to the $580 premium, your effective cost basis is just $79.20 per share – a roughly 45% discount from the current level.

Palantir does carry a speculative premium at current prices, and that’s worth acknowledging. But at $85, the calculus shifts. Palantir is positioning itself at the center of the agentic AI wave, with its AIP platform gaining rapid traction across both government and enterprise clients.

Palantir, Microsoft (MSFT), Snowflake (SNOW) See some of the companies that can turn Agentic AI into recurring revenue

As AI-driven automation accelerates, Palantir’s data infrastructure and ontology layer become increasingly difficult to displace. A 40% discount to today’s price offers a far more forgiving entry into a business with genuine long-term upside.

Check out Buy or Sell PLTR Stock and Palantir Technologies Investment Highlights

If you are not comfortable with options or stock-specific trades, portfolios are the way to go, as they can protect and grow wealth even better.

Smart Investing Begins With Portfolios

Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.