Cybersecurity Stock Surges on Potential Sale

Calls have been much more popular over the last 10 weeks

Jake Scott

Deputy Editor

Oct 12, 2022 at 9:54 AM

KNBE

Cybersecurity stock Knowbe4 Inc (NASDAQ:KNBE) is 12.6% higher to trade at $24.30, after it was revealed that Vista Equity Partners is closing in on a deal to buy the company. According to the Wall Street Journal, the private equity firm is closing in on a deal to buy KnowBe4 for about $4.5 billion, or $24.90 per share in cash.

Today's breakout has the shares at their highest level since April 29. When rumors of the acquisition surfaced in mid September, KNBE gapped higher by 28% on Sept. 19. Since then, the shares have support in place at their ascending 20-day moving average.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KNBE sports a 50-day call/put volume ratio of 4.32, which stands higher than 81% of readings from the past year. In other words, the penchant for bullish bets over the last 10 weeks is abnormally high.

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