Cybersecurity Stock Ready to Extend Run Higher

Core Insights - Cloudflare Inc (NYSE:NET) shares have increased by 0.7% to $195.32, reaching a three-year high of $196.20, supported by the 20-day moving average [1] - The stock has gained 135.7% year-over-year and 81.4% year-to-date in 2025, indicating a strong upward trend [1] - A historically bullish signal is currently present, suggesting continued momentum in the stock's performance [1] Volatility and Price Movement - The recent peak in Cloudflare's stock price coincides with low implied volatility, as indicated by a Schaeffer's Volatility Index (SVI) of 37%, which is in the 15th percentile of its annual range [2] - Historically, similar conditions have led to an 80% chance of the stock rising one month later, with an average increase of 11.3% [2] - A similar upward movement could push the stock price above $217 for the first time since 2021 [2] Analyst Sentiment - Despite a generally bullish outlook among analysts, there remains some pessimism, with 13 out of 31 firms rating the stock as "hold" or worse [4] - The 12-month consensus target price is $159.83, representing an 18.1% discount to current levels, indicating potential for price-target increases [4] Options Trading Potential - Investors looking to capitalize on Cloudflare's potential price increase may consider options trading, as the Schaeffer's Volatility Scorecard (SVS) ranks high at 80 out of 100 [5] - This high score suggests that the stock has historically exceeded volatility expectations, which is advantageous for options buyers [5]