Is This Cybersecurity Stock About to Snag 16%?

Palo Alto Networks PANW – NYSE

Wednesday, July 12, 2017

With hacking and security breaches consistently making headlines, you’d think cybersecurity stocks would be setting new highs. However, Palo Alto Networks PANW – NYSE has been establishing lower lows and lower highs for over two years.

Is it now starting to reverse the trend? After exhibiting some recent signs of strength, a trader bought 3,000 PANW September 160 calls for $2.35 apiece earlier today.

PANW

Costing $705,000, PANW needs to increase 16.5% to the break-even price at $162.35 for this trade to pay off by expiration. PANW is prone to making out-sized swings, with the stock fluctuating at least 16% on both of the last two earnings announcements alone.

If upcoming earnings on August 28 juices PANW to the upside, our trader is in line to make $300,000 for every dollar above the break-even threshold.

Top 5 Imminent Mergers & Acquisitions: By tracking highly unusual options trades, we tip members to upcoming buyouts, M&A activity, and secret boardroom deals before the news is public. Some members have described it as “having a wiretap on every single company.” Click here for the top 5 stocks about to make some major headlines.


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