Palo Alto Networks Inc (PANW) Options Hot After Cramer Callout

Palo Alto Networks Inc (NYSE:PANW) is rallying today after being mentioned on "Mad Money"

Jan 29, 2016 at 1:43 PM
facebook X logo linkedin

Palo Alto Networks Inc (NYSE:PANW) options pits are hopping today, after the stock was mentioned on CNBC's "Mad Money" with Jim Cramer. At last check, overall volume was running at two times what's typically seen at this point in the day, with calls having a healthy lead over puts.

PANW's most active option this afternoon is the weekly 1/29 152.50-strike call, where new positions are possibly being purchased. In other words, it appears eleventh-hour speculators are betting on a bigger rally through tonight's close.

Elsewhere, longer-term traders have honed in on PANW's March 110 call. It looks as if some speculators are buying to open these deep in-the-money calls for a volume-weighted average price (VWAP) of $42.05, making breakeven $152.05 (strike plus VWAP).

From a wider sentiment perspective, today's call-skewed session is just more of the same. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, PANW's 10-day call/put volume ratio of 1.66 ranks in the 87th annual percentile. In other words, calls have been bought to open over puts at a faster-than-usual clip.

Echoing this is the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.76, which sits lower than 67% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-heavy than usual toward PANW.

Option bulls are likely cheering today's run higher, considering the stock was staring at a 20.6% year-to-date deficit heading into the session. Specifically, shares of a Palo Alto Networks Inc (NYSE:PANW) are up 5.5% at $147.42, after being called out by Jim Cramer. While the focus of the episode was Facebook Inc's (NASDAQ:FB) outstanding earnings, Cramer noted PANW is a "high-multiple, speculative stock" that he would like to see bounce back before he would recommend it as a "buy."

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI