Schaeffer's Top Stock Picks for '25

Palo Alto Stock Picks Up After Strong Results

Options volume is running at six times the intraday average amount

Deputy Editor
Nov 18, 2022 at 11:28 AM
facebook X logo linkedin


Palo Alto Networks Inc (NASDAQ:PANW) is surging after its fiscal first-quarter earnings beat and raise, up 9.4% at $171.33 at last glance. No fewer than six analysts lifted their price targets in response, including Oppenheimer to $220 from $200, while Credit Suisse and Wolfe Research threw in a small price-target cuts to $225. The analysts in coverage Morgan Stanley, which holds an "overweight" rating and $268 price target, stated that Palo Alto "will be the first $100 billion market cap company in cybersecurity, or nearly double its current share price in two years."

PANW is trending on StockTwits after the event, with options traders traders targeting the equity at full force. So far, 56,000 calls and 29,000 puts have crossed the tape, which is six  times the average intraday volume. The November 175 call is the most popular, followed by the November 160 put. 

It's also worth noting that short interest makes up 7.4% of the stock's available float. It would take over five days to buy back these bearish bets, at PANW's average pace of trading. 

Lastly, short-term options traders have been overwhelmingly pessimistic on PANW. This is per its Schaeffer's put/call open interest ratio (SOIR) 1.68, which ranks higher than 84% of readings from the past year. An unwinding of these bearish bets could support an even bigger surge in the shares.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));