What the Options Market Tells Us About Palo Alto Networks

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 31 uncommon options trades for Palo Alto Networks.

This isn't normal.

The overall sentiment of these big-money traders is split between 48% bullish and 25%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $632,928, and 22 are calls, for a total amount of $1,348,035.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $75.0 to $340.0 for Palo Alto Networks over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $75.0 to $340.0 in the last 30 days.

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

Largest Options Trades Observed:

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 80,000 enterprise customers across the world, including more than three fourths of the Global 2000.

Following our analysis of the options activities associated with Palo Alto Networks, we pivot to a closer look at the company's own performance.

Palo Alto Networks's Current Market Status

• With a volume of 1,485,543, the price of PANW is up 0.98% at $217.13.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 26 days.

What Analysts Are Saying About Palo Alto Networks

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $246.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * In a cautious move, an analyst from Tigress Financial downgraded its rating to Buy, setting a price target of $245. * An analyst from Oppenheimer has decided to maintain their Outperform rating on Palo Alto Networks, which currently sits at a price target of $245. * An analyst from BTIG has elevated its stance to Buy, setting a new price target at $248.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Palo Alto Networks with Benzinga Pro for real-time alerts.