Palo Alto Networks stock could extend its recent rally
Cybersecurity giant Palo Alto Networks Inc (NASDAQ:PANW) stock is up 2.3% to trade at $358.50 at last check, as investors unpack earnings results from sector peers Okta (OKTA) and CrowdStrike (CRWD). The security already boasts a 50.5% year-over-year lead, with the $345 level containing a pullback from its highest level since February. The shares are on track for their third-straight daily win and, if past is precedent, could keep charging higher next month.
Per a study from Schaeffer’s Senior Quantitative Analyst Rocky White, PANW is one of the best S&PS 500 Index (SPX) stocks to own in September. The equity is third on the list, averaging a 3% gain for the month and ending it higher 60% of the time.
Options traders lean bullish on PANW. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 50-day call/put volume ratio of 1.67 ranks higher than 93% of readings from the past year. This indicates calls have been more popular than usual.
Now looks like an excellent time to weigh in on Palo Alto Networks stock’s next moves with options. This is per the equity’s Schaeffer’s Volatility Index (SVI) of 30% that stands in the low 12th percentile of its 12-month range, meaning options traders are pricing in low volatility expectations.