Back in February, Palo Alto Networks PANW – NYSE dropped 24% in a single session after reporting disastrous earnings. Ever since it’s been attempting to carve out a bottom, and now a trader playing the long game bought 2,000 PANW 200 strike calls expiring January 2019 for $2.70 each or $540,000 in total.
A trade this far out of the money is quite uncommon. While expiration is 20 months away, PANW needs to increase 74% to the break-even price of $202.70 for this trade to pay off.
If cybersecurity stocks get hot and PANW goes on a tear, this trader will take in $200,000 for every dollar PANW rises above this lofty threshold level.
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