CrowdStrike Climbs to Record, Options Signal Hopes Rally Can Keep Going
$CrowdStrike (CRWD.US)$ shares climbed to a record Monday and the trading activity in the stock options signal optimism that the rally may have more room to run.
The rally was ignited by an announcement late last week that the cybersecurity company will be added to the S&P 500 Index on June 24. CrowdStrike, $KKR & Co (KKR.US)$ and $GoDaddy (GDDY.US)$ will replace $Comerica (CMA.US)$, $Robert Half (RHI.US)$ and $Illumina (ILMN.US)$ in the benchmark index.
The rally was ignited by an announcement late last week that the cybersecurity company will be added to the S&P 500 Index on June 24. CrowdStrike, $KKR & Co (KKR.US)$ and $GoDaddy (GDDY.US)$ will replace $Comerica (CMA.US)$, $Robert Half (RHI.US)$ and $Illumina (ILMN.US)$ in the benchmark index.
The inclusion to a major stock index tends to unleash demand for the stock from funds that mimic the benchmark to a certain extent. That's now showing in CrowdStrike's capital trend. Data tracked by moomoo showed a net inflow of $78.2 million into the stock as of 11:05 a.m. New York time Monday. That's the biggest daily net inflow since March 1.
Almost 85% of the net inflows came from large orders, while another 17% were from extra-large orders, which could signal financial giants are jumping in.
In the options market, buyers are piling in call options that give the holders the right to buy CrowdStrike shares at $400 each, implying optimism of further upside for the stock that's already up 8.8% at $379.97 at 11:27 a.m. in New York. A combined 15,900 $400 call options traded so far across 19 expiration dates tracked by moomoo.
The heaviest volume is in calls expiring by Friday. About 9,720 of such $400 calls have already traded, more than 15 times the option interest. The price of such calls climbed more than 200% to $1.71 per share.
Amid the jump in shares, nine of the 15 technical indicators tracked by moomoo are flagging that the stock is overbought and is turning bearish. Only the moving average convergence-divergence indicator is positive.
Share your thoughts on CrowdStrike below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Paul Bin Anthony : very helpful thanks