Cybersecurity name CyberArk Software Ltd (NASDAQ:CYBR) is eyeing its fifth consecutive win today, set for its biggest weekly gain since the stock hit a record high of $148.74 back in late July. While the equity has cooled since then, a sharp bounce off the $97 region, as well as a historically bullish trendline, suggests CYBR could extend its recent rally.
The trendline in question is CYBR's 52-week moving average. The security is trading within one standard deviation of this moving average after a lengthy stretch above it, defined for this study as being above it 80% of the time in the last 20 weeks. In the three other times this signal has sounded, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, CYBR was higher each time one month out, averaging a 10.4% gain.
Analyst are already rallying behind CYBR, with 14 of the 18 in coverage calling it a "strong buy." Plus, the consensus 12-month price target for the stock is all the way up at $144.77.
There's been plenty of bullish activity in the options pits, too. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CYBR sports a 10-day call/put volume ratio of 4.86, which sits in the 85th percentile of its annual range.
Now appears to be a good time to speculate on CYBR's next move with options. The security's Schaeffer's Volatility Index (SVI) of 39% is in the 16th percentile of its annual range, which means near-term options premiums are pricing in relatively low volatility expectations at the moment.