Palo Alto Networks Options Trading: A Deep Dive into Market Sentiment

Author: Benzinga Insights | June 28, 2024 12:46pm

Investors with a lot of money to spend have taken a bullish stance on Palo Alto Networks (NASDAQ:PANW).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with PANW, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 15 uncommon options trades for Palo Alto Networks.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 20%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $464,750, and 10 are calls, for a total amount of $624,069.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $200.0 to $390.0 for Palo Alto Networks over the recent three months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Palo Alto Networks's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Palo Alto Networks's substantial trades, within a strike price spectrum from $200.0 to $390.0 over the preceding 30 days.

Palo Alto Networks Call and Put Volume: 30-Day Overview

Options Call Chart

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
PANW	PUT	SWEEP	BULLISH	12/18/26	$92.2	$89.3	$89.3	$390.00	$223.2K	0	0
PANW	CALL	TRADE	NEUTRAL	06/28/24	$26.1	$21.35	$23.73	$317.50	$213.5K	364	12
PANW	CALL	SWEEP	BULLISH	06/20/25	$54.1	$53.3	$54.1	$350.00	$135.2K	317	0
PANW	PUT	SWEEP	BULLISH	03/21/25	$11.8	$11.3	$11.3	$270.00	$113.0K	485	0
PANW	CALL	SWEEP	BEARISH	07/12/24	$12.35	$11.1	$11.49	$335.00	$49.9K	350	107

About Palo Alto Networks

Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 85,000 customers across the world, including more than three fourths of the Global 2000.

In light of the recent options history for Palo Alto Networks, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Palo Alto Networks's Current Market Status

Currently trading with a volume of 2,217,061, the PANW's price is up by 0.27%, now at $341.75.
RSI readings suggest the stock is currently may be overbought.
Anticipated earnings release is in 49 days.

Expert Opinions on Palo Alto Networks

4 market experts have recently issued ratings for this stock, with a consensus target price of $362.5.

An analyst from DA Davidson downgraded its action to Buy with a price target of $380.
An analyst from Baird has decided to maintain their Outperform rating on Palo Alto Networks, which currently sits at a price target of $360.
Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Palo Alto Networks, targeting a price of $360.
Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $350.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Palo Alto Networks options trades with real-time alerts from Benzinga Pro.

Posted In: PANW