Palo Alto Networks (PANW) has been flying this month.
The stock closed higher eight consecutive trading days, it’s up 16% since last Wednesday, and trading near all-time highs.
While this name has some real momentum behind it (for now), Scott Bauer wonders if it may have run too far too fast.
On Schwab Network’s Trading 360, Scott highlighted PANW in one of his example trades for their Big 3 segment.
Although Scott loves the stock, he explains why he doesn’t necessarily love the price right now, how he believes PANW looks ahead of its June 2 earnings report, and how he would consider trading the stock.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott covers:
- Why he believes PANW has run too far too quickly
- How he would add a “bearish tilt” to play consolidation ahead of earnings
- The put and call spread levels he would consider selling and why
- What $2.50 in collected premium means for the trade
- Why his position would expire before earnings (and why that matters)
