Palo Alto Stock Picks Up After Strong Results

Options volume is running at six times the intraday average amount

Deputy Editor
Nov 18, 2022 at 11:28 AM
facebook twitter linkedin

Palo Alto Networks Inc (NASDAQ:PANW) is surging after its fiscal first-quarter earnings beat and raise, up 9.4% at $171.33 at last glance. No fewer than six analysts lifted their price targets in response, including Oppenheimer to $220 from $200, while Credit Suisse and Wolfe Research threw in a small price-target cuts to $225. The analysts in coverage Morgan Stanley, which holds an "overweight" rating and $268 price target, stated that Palo Alto "will be the first $100 billion market cap company in cybersecurity, or nearly double its current share price in two years."

PANW is trending on StockTwits after the event, with options traders traders targeting the equity at full force. So far, 56,000 calls and 29,000 puts have crossed the tape, which is six  times the average intraday volume. The November 175 call is the most popular, followed by the November 160 put. 

It's also worth noting that short interest makes up 7.4% of the stock's available float. It would take over five days to buy back these bearish bets, at PANW's average pace of trading. 

Lastly, short-term options traders have been overwhelmingly pessimistic on PANW. This is per its Schaeffer's put/call open interest ratio (SOIR) 1.68, which ranks higher than 84% of readings from the past year. An unwinding of these bearish bets could support an even bigger surge in the shares.



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.