Software stock PANW is reeling after earnings
Nvidia (NVDA) is far from the only tech name making noise today, with traders’ sights set on Palo Alto Networks Inc (Nasdaq:Panw). The stock was last seen down 3.5% to trade at $192.99, brushing off better-than-expected fiscal first-quarter earnings and revenue. The company’s guidance was in line with expectations, while the cybersecurity firm also unveiled plans to buy Chronosphere for $3.35 billion.
PANW has been struggling to maintain any positive momentum since hitting a record high of $223.61 on Oct. 23. Now clinging to a 5% year-to-date gain, the equity is headed for its sixth loss in seven sessions, though the 200-day moving average has swooped in as support for the pullback.
Options traders are eyeing PANW after the event. So far today, 29,000 calls and 27,000 puts have been purchased, six times the average amount typically seen at this point. Most popular are the November 190 put and and 205 call, with sell-to-open activity happening at both.
Short sellers have been retreating. Over the past two reporting periods, short interest has dropped 8.1% and now accounts for 6.6% of the stock’s total available float, or seven days’ worth of pent-up buying power.
