Spotlight on Palo Alto Networks: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on Palo Alto Networks 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 25 uncommon options trades for Palo Alto Networks.

This isn't normal.

The overall sentiment of these big-money traders is split between 44% bullish and 56%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $402,120, and 18 are calls, for a total amount of $1,005,684.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $370.0 for Palo Alto Networks, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Palo Alto Networks's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Palo Alto Networks's whale activity within a strike price range from $250.0 to $370.0 in the last 30 days.

Palo Alto Networks Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

After a thorough review of the options trading surrounding Palo Alto Networks, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Palo Alto Networks

• Trading volume stands at 949,248, with PANW's price down by -1.38%, positioned at $341.11.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 20 days.

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.