Crowdstrike Stock Looks Poised for More Record Highs

A shift in the options pits may create additional tailwinds

Assistant Editor
Sep 14, 2021 at 1:46 PM
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The shares of Crowdstrike Holdings Inc (NASDAQ:CRWD) are inching higher, last seen up 1.4% to trade at $257.52, after the security nabbed an Aug. 30 all-time high of $289.24. The equity has cooled down since that peak, though, and is pacing for its third-straight weekly loss, with overhead pressure from the 20-day moving average and $260 level keeping a tight lid on gains. Still, there is reason to believe this downward may be short-lived, with more records on the horizon.

According to data from Schaeffer's Senior Quantitative Researcher Rocky White, Crowdstrike stock just came back within one standard deviation of its 80-day moving average, after spending some time above the trendline. White's study shows the equity has made a similar move four other times. One month after these instances, the security was higher, averaging a 24.8% return. Should CRWD stage a comparable move from its current perch, it could put the equity at a fresh all-time high of $321.38.

CRWD Chart September 14

A shift in the options pits could create additional tailwinds for CRWD. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio sits higher than 99% of readings from the past year. This implies options traders are picking up puts at a quicker-than-usual clip. 

Options seem like a good bet for those wanting to weigh on CrowdStrike's next move higher. CRWD's Schaeffer's Volatility Index (SVI) of 40% ranks in the 11th percentile of its annual range, meaning short-term options are pricing in low volatility expectations at the moment. Plus, the security has consistently rewarded premium buyers over the past year. Its Schaeffer's Volatility Scorecard (SVS) of 94 out of a 100 indicates the stock has tended to make outsized moves on the chart, relative to what the options market was anticipating.

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