Cyberark Stock Surging on Revenue Beat, Strong Outlook

Options volume is running at six times what's typically seen

Deputy Editor
Aug 12, 2021 at 12:54 PM
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While Cyberark Software Ltd (NASDAQ:CYBR) posted second-quarter earnings of $0.01, which just barely missed expectations, investors seem to be looking toward the company's solid 10% year-over-year revenue growth to $117.2 million, which easily topped analysts' estimates. The firm also issued current-quarter and full-year guidance, with its total revenue expected to come in between $116 million and $124.0 million for the third quarter, and its full-year revenue projected at $484 million to $496 million. 

The equity is surging today, last seen up 6.3% at $144.55. Cyberark stock earlier rose to a nearly three-week high of $145.78, but it looks like a recent ceiling at the $145 level could provide pressure. There's underlying support at the 200-day moving average, however, while the 100-day moving average looks to have recently emerged as a springboard for CYBR as well. The stock sports a year-over-year lead of 32.7%. 

CYBR Aug 12 new

Options traders are blasting CYBR after the event, with 2,075 calls and 1,344 puts across the tape so far -- six times the intraday average. The most popular is the September 70 put, where positions are being sold to open. This suggests these traders are expecting the $70 level to hold as a floor for the underlying stock until these contracts expire on Friday, Sept. 17. The weekly 8/13 140-strike call is also seeing plenty of action, with positions being bought to open here. 

Calls have been popular on CYBR ahead of today's earnings event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call//put volume ratio of 3.06, which stands higher than 78% of readings from the past year. This means long calls are being picked up at a relatively quicker-than-usual clip. 

Short interest is sinking, down 6% in the last reporting period, but a further unwinding of these bearish bets could give CYBR an extra boost. The 2.35 million shares sold short still make up 6% of the stock's available float, and would take over a week to buy back, at Cyberark's average daily pace of trading. 

 

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