Selling Pressure Is Ramping Up on This Cybersecurity Stock

Short-term CYBR options are attractively priced right now

Nov 28, 2017 at 10:01 AM
facebook twitter linkedin

CyberArk Software Ltd (NASDAQ:CYBR) has underperformed on the charts this year, adding a meager 3% in 2017 and shedding 10% year-over-year. The software stock rallied after hitting an annual low of $39.34 on Aug. 30, but is still badly underperforming the Nasdaq Composite (IXIC) and Russell 2000 Index (RUT). Plus, the stock is now staring up at a formidable challenge in the $48 area; the security's descending 320-day moving average is moving into the region, which also represents a triple of CYBR's $16 IPO price.

WT Series CYBR


Short sellers have been flocking to CYBR. Short interest increased by nearly 47% during the last reporting period to 2.02 million shares, and has more than doubled from its mid-September lows. These bears could view the recent rally as an opportunity to build their bets against the stock, with the resulting selling pressure creating a fresh headwind -- and with short interest still 25% below its year-to-date high, there's plenty of room to grow here.

Furthermore, it's a good time to target near-term CYBR options. CYBR's Schaeffer's Volatility Index (SVI) of 26% ranks lower than 99% of other such readings from the past year, meaning volatility expectations are unusually muted for short-term options.

Subscribers to Schaeffer's Weekend Trader Alert options recommendation service received this CYBR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners