Okta Stock Extends Slide After Latest Cyber Breach

Options traders and analysts are chiming in as well

Laura McCandless

Deputy Editor

Oct 23, 2023 at 2:15 PM

OKTA

Okta Inc (NASDAQ:OKTA) is down 9.3% at $68.55 at last glance, extending Friday's 11.6% slide after the company disclosed a cyber breach of its customer support system. Analysts were quick to comment on the news, with Evercore ISI moving the stock to its "tactical underperform" list, noting that the breach is the second in roughly two years. No fewer than three other analysts slashed their price targets as well.

Today's gap lower has OKTA breaking below its 320-day moving average, which kept last session's losses in check. On the short sell restricted (SSR) list amid the volatility, the shares are hovering around their 2023 breakeven level.

OKTA Oct23

So far in the options pits today, 31,000 calls and 29,000 puts have been exchanged, which is seven times the average daily volume already. The weekly 10/27 80-strike call is the most active contract, with new positions being bought to open.

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