Big Gains Attract Cyberark Software Ltd (CYBR) Traders

Cyberark Software Ltd (CYBR) is blowing up -- and option traders have taken notice


Published on Apr 7, 2015 at 1:56 PM
Updated on Apr 20, 2015 at 5:32 PM

Despite the absence of any news,Cyberark Software Ltd (NASDAQ:CYBR) is having a banner day -- spiking 8% to trade at $59.36. The surge has caught the attention of options traders, who are targeting calls at a faster-than-usual clip this afternoon.

At last check, more than 5,600 CYBR calls have changed hands -- more than double what's expected at this point in the day. Seeing the most action are the April 55 and 60 calls, where data from the International Securities Exchange (ISE) suggests a long call spread is being closed ahead of expiration. Meanwhile, opening activity may be taking place at the April 50 call, where traders could be purchasing positions in the hopes CYBR will extend its lead north of the round-number $50 level through next Friday's close, when the options expire.

In recent weeks, traders at the ISE, Chicago Board Options Exchange, and NASDAQ OMX PHLX (PHLX) have been buying to open CYBR calls over puts by a nearly 5-to-1 margin. Specifically, the stock's 10-day ISE/CBOE/PHLX call/put volume ratio is 4.73 -- nearly triple the comparable ratio of 1.61 from two weeks ago.

There's good reason options traders are betting bullishly. Cyberark Software Ltd (NASDAQ:CYBR) has been a technical beast over the past two months, outperforming the broader S&P 500 Index (SPX) by 46.5 percentage points. Year-to-date, shares of the cybersecurity firm have advanced nearly 50%.

Daily Chart of CYBR since January 2015

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