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How to Benefit from the Emerging AI Enthusiasm in Cybersecurity Stocks Using Options

2024-06-11 15:11:07.987000

Epoch Investment Partners Inc., a major institutional investor, has sold 3,076 shares of Palo Alto Networks, Inc. (NASDAQ:PANW), reducing its stake in the company by 43.2%. The firm now owns 4,051 shares of PANW, valued at $1,195,000. This move by Epoch Investment Partners Inc. follows other institutional investors who have also made changes to their positions in PANW. Additionally, PANW's EVP Lee Klarich recently sold 60,000 shares of PANW stock at an average price of $284.33, totaling $17,059,800. Insiders have sold a total of 314,897 shares of PANW stock in the last 90 days. Analysts have given PANW a consensus rating of 'Moderate Buy' with an average price target of $322.78. PANW reported earnings of $1.32 per share for the quarter, beating the consensus estimate of $1.25. The company had revenue of $1.98 billion, up 15.3% from the same quarter last year. [32e05ad8]

CastleKnight Management LP has purchased a new stake in Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) worth $1.37 million. The fund acquired 432,600 shares of the company's stock, representing 0.14% ownership. Other hedge funds, including Vanguard Group and AQR Capital Management, have also increased their positions in WOOF. Several research analysts have recently given their ratings on the stock, with a consensus rating of 'Hold' and an average target price of $3.09. In other news, Director Cameron Breitner purchased 750,000 shares of WOOF at an average price of $3.14 per share, bringing the total value of the transaction to $2,355,000. Petco Health and Wellness Company, Inc. has a market capitalization of $1.12 billion and a P/E ratio of -0.74. The company reported $0.02 earnings per share for the last quarter, in line with analysts' estimates. Petco Health and Wellness is a health and wellness company that provides veterinary care, grooming, training, tele-health, and pet health insurance services.

The article discusses how to benefit from the emerging AI enthusiasm in cybersecurity stocks using options. The author suggests using Palo Alto Networks (PANW) as a proxy trade to participate in the boom. Technical indicators such as RSI analysis, DMI crossover, and price action support a bullish bias on PANW. The trade structure recommended is a 'bull call spread' involving buying a $305 call and selling a $310 call with a 7/5 expiry. The potential profit is $250 if PANW trades at or above $310 by the expiration date. The author advises waiting until Wednesday, when important inflation-related data and the FOMC rate decision are released, before considering the trade setup.

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