Trader who successfully shorted Tesla into earnings now sets sights on this high flyer - CNBC

What the report says

CNBC reported that an options trade set up ahead of Tesla’s second-quarter earnings has largely played out after the stock fell sharply following the report. The article said the bearish case was based on signs that investor expectations were extremely high, even though Tesla later posted revenue of $28.2 billion, up 26% from a year earlier. Adjusted earnings of 34 cents per share missed the 50-cent consensus estimate cited by CNBC, operating margin narrowed to 1.4%, and higher capital spending pushed free cash flow negative.

According to CNBC, Tesla shares dropped about 14.5% on Thursday, moving through the strike level used in the bearish put-spread strategy and landing near the trade’s intended target. The piece framed the next decision as a risk-management choice: close the Tesla position and lock in gains, or use part of the proceeds to make a similar defined-risk wager against another richly valued company.

The next target identified in the CNBC article is Palantir, which it said is scheduled to report earnings on August 3. The analysis described Palantir as a strong business but argued that its valuation, slowing commercial backlog growth cited from Bloomberg, competitive pressure in artificial intelligence software, and national-security-related limits on international sales could make the stock vulnerable if results or guidance disappoint.

CNBC outlined a possible Palantir August put spread, with risk limited to the upfront cost and potential profit if the stock falls substantially by expiration. The article matters for investors because it highlights how some options traders are positioning around high-expectation technology earnings, where even solid revenue growth may not be enough to support elevated share prices.