Profit-catching Tesla trade pivots to Palantir hedges

A trader who bet against Tesla after its earnings warns of two paths: book the gains from the TSLA short put spread or press with “house money” by targeting a Palantir play ahead of PLTR earnings. The suggested move is to close the August 360/330 TSLA put spread for about $23, then, if they press, buy the Palantir August 21st 120/95 put spread for roughly $6.50 (funded by the TSLA proceeds). This defines risk to the debit paid and could yield about $18.50 max profit per spread if PLTR ends below 95 at expiration. The Palantir setup hinges on growth challenges, LLM competition, and high valuation, which traders see as potential triggers for volatility around August earnings.