On Monday November 21st, Palo Alto Networks (
PANW - Free Report) will release its third quarter earnings results after the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of C.
Earlier today, Dave Bartosiak gave us two different strategies to play Palo Alto Network's earnings. As usual, he gives a bearish scenario and a bullish scenario, then offers up his opinion on which he believes has the greatest likelihood of success.
His bullish trade idea was going long on the January 20th $160/175 Call Spread for a Net Debit $6.65.
The trade could make 125% if shares of PANW close above $175 at expiration on January 20th. The max loss is below $160, and break even at $166.65.
His bearish trade idea was going long on January 20th $160/150 Put Spread for a Net Debit of $6.15.
The trade could make 145% if shares of PANW close below $150 at experiation on January 20th. The max loss is above $165, and break even at $158.90.
To find out which trade Dave thought had the best chance of winning, check out his video analysis above.
Palo Alto Networks in Focus
Palo Alto Networks, Inc. offers a network security platform that allows enterprises, service providers, and government entities to secure their networks. The core of its platform is the Company's firewall that delivers natively integrated application, user, and content visibility and control through its operating system, hardware, and software architecture. It serves the enterprise network security market, which consists of Firewall, Unified Threat Management, Web Gateway, Intrusion Detection and Prevention, and Virtual Private Network technologies. Palo Alto Networks, Inc. is headquartered in Santa Clara, California.
Palo Alto Networks is expected to
report earnings at -$0.27 a share according to the Zacks Consensus Estimate. Last quarter they missed earnings expectations by -112.50% at -$0.51 per share, beating estimates of $0.05 a share. They have an average earnings surprise of -189.91%.
How should investors play Salesforce ahead of their earnings report? For future insights on the best options trades, then tune into
Zacks Live Trader to see David's thoughts.
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