There was a significant amount of unusual options activity in Palantir (PLTR) last week, with volume 9x the regular amount on one day last week, observes Jay Soloff of Investors Alley.

The data-analysis company’s products are used for defense and intelligence and could replace more expensive technology/resources in the US if military spending is cut. The stock was up big after hedge funds showed substantial ownership in the recently IPOed stock. One large trade from last week was a covered call where the trader stands to generate nearly 25% yields over a roughly four-month period.

Learn more about Jay Soloff at Investors Alley.