Palo Alto Networks Inc (NASDAQ:PANW) stock was last seen up 2% to trade at $191.11, while also sporting a 13.7% year-over-year lead. The equity is rebounding after dropping to its lowest level since May 30, following two failed attempts to conquer a Feb. 19, record high of $208.39. The stock could soon push back toward those highs, however, as the recent pullback placed it near a historically bullish trendline.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, PANW is within one standard deviation of its 200-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, seven other signals occurred over the past five years, after which the stock was higher one month later 86% of the time, averaging a 11.7% gain. Should a move of similar magnitude happen, the shares could notch a fresh record of $213.46.
Additional tailwinds could stem from an unwinding of pessimism in the options pits. This is per the security’s Schaeffer’s put/call open interest ratio (SOIR) of 1.27, which stands in the 72nd percentile of readings from the past 12 months.
Options look like an affordable route for those looking to benefit from the security’s next moves. This is per the stock’s Schaeffer’s Volatility Index (SVI) of 32%, which sits in the 5th percentile of its annual range. This means options traders are pricing in low volatility expectations.
