Fortinet Stock Moves Lower on BofA Downgrade

Year-over-year, FTNT is still up more than 91%

Digital Content Manager
Mar 25, 2022 at 10:17 AM
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Fortinet Inc (NASDAQ: FTNT) is down 1.7% to trade at $330.02 at last check, after the stock received a downgrade from Bank of America Securities to “neutral” from “buy.” The analyst in question noted the company's strong quarterly results are already reflected in its current valuation.

The equity has seen a volatile past couple of months, since surging to a Dec. 29, all-time high of $371.77. Two of its recent pullbacks were caught between the $262 and $265 region, while the the $337 mark seems to have rejected Fortinet stock's latest rally. Year-over-year, FTNT is up 91.4%.

The options pits have been more bearish than usual, with puts popular in the last 10 weeks. At International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FTNT sports a 50-day put/call volume ratio of 1.04 that sits higher than 99% of annual readings. This means long puts have been getting picked up at a much quicker-than-usual pace.  

The security's usually quiet options pits are heating up today. Amid low absolute volume, 521 calls and 490 puts have crossed the tape, which is double what is normally seen at this point. The most popular is the April 290 put, followed by the May 290 call, with positions being sold to open at the latter

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 88 out of 100, suggesting the stock has exceeded options traders' volatility expectations in the past year.


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