Cyberark Software Ltd (CYBR) Bulls Think There's More Fuel in the Tank

Cyberark Software Ltd (CYBR) hit its highest perch on record earlier

by Karee Venema

Published on Feb 18, 2015 at 3:07 PM
Updated on Jun 24, 2020 at 10:16 AM

It's been quite a month for Cyberark Software Ltd (NASDAQ:CYBR), thanks to a big push to implement new cybersecurity measures and a strong showing in the earnings confessional. Since the stock's Jan. 30 close, in fact, the equity has rallied roughly 86% -- and hit an all-time peak of $63.30 today -- to linger near $63.00. Not surprisingly, initiating long calls has been a popular strategy in the equity's options pits in recent weeks.

Specifically, over the past 20 sessions, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 3.69 calls for each put. Echoing this call-skewed trend is CYBR's Schaeffer's put/call open interest ratio (SOIR) of 0.64, which indicates call open interest outweighs put open interest among options slated to expire in three months or less.

It's a trend continuing today, with calls trading at six times what's typically seen at this point in the day, and outpacing puts by a nearly 2-to-1 margin. Most active are CYBR's February 60 and 65 calls, where buy-to-open activity has been detected. By purchasing these calls, traders expect the security to finish north of the respective strikes by week's end, when front-month options expire.

The options market seems fairly confident the February 60 call will expire in the money at week's end, as its delta is docked at 0.72. Meanwhile, delta on the February 65 call -- which, in order to expire in the money, requires a move to uncharted territory by Cyberark Software Ltd (NASDAQ:CYBR) -- is perched at 0.33.


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