Buyout Buzz Has Cyberark Software Ltd (CYBR) Option Bulls Biting

Cyberark Software Ltd (NASDAQ:CYBR) call volume has jumped to two times the average intraday pace today

Sep 23, 2015 at 3:08 PM
facebook X logo linkedin


Cybersecurity stocks could be in focus later this week when Chinese President Xi Jinping heads to D.C. to meet with President Barack Obama. Last week, Obama issued strong words to Beijing over recent cyberattacks, and yesterday, Jinping said a "high-level, joint-dialogue mechanism" must be established. Ahead of this anticipated event, sector component Cyberark Software Ltd (NASDAQ:CYBR) is creating its own waves -- up 3.6% at $51.84 -- amid unconfirmed rumors of potential buyout bids from International Business Machines Corp. (NYSE:IBM) and FireEye Inc (NASDAQ:FEYE).

Option traders are responding in kind, with calls crossing at two times the average intraday rate, and outpacing puts by a more than 2-to-1 margin. Speculators appear to be rolling the dice on an extended run higher in the near term, with buy-to-open activity detected at CYBR's weekly 9/25 53-strike and October 57 calls. By initiating new long calls, the goal is for the security to settle north of the strikes at the respective expiration dates.

Today's call-skewed session is par for the course in CYBR's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 2.21 calls for every put over the past 10 sessions. Echoing this is CYBR's Schaeffer's put/call open interest ratio (SOIR) of 0.66, which indicates call open interest outweighs put open interest among options expiring in three months or less.

Looking back over the past 10 sessions, call buyers have focused their attention on CYBR's October 60 strike -- which has seen one of the largest increases in open interest. By buying to open the calls, speculators expect the stock to rally north of the round-number $60 mark by the close on Friday, Oct. 16 -- when front-month options expire.

Given the out-of-the-money nature of this option, this buy-to-open activity could be at the hands of short sellers protecting their bearish bets. Short interest on Cyberark Software Ltd (NASDAQ:CYBR) surged 46% during the last two reporting periods, and now accounts for almost 21% of the equity's available float.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI