Cloudflare Stock Has Plenty of Room to Run

Core Insights - Cloudflare Inc (NYSE:NET) has shown resilience by bouncing back near its all-time high breakout and 20-day moving average, indicating potential upward momentum towards a target of 220-strike by July expiration [1] Options Activity - An unwinding of bearish sentiment in the options market could provide positive momentum for NET, as its 50-day put/call volume ratio ranks higher than 72% of readings from the past year [2] - Options are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 43% in the 14th percentile of its annual range, suggesting lower-than-usual volatility expectations [3] - The Schaeffer's Volatility Scorecard (SVS) for NET is at 80 out of 100, indicating that the stock has historically exceeded volatility expectations [3] Investment Recommendation - A recommended September call option has a leverage ratio of 5.2, which could double in value with a 21.6% increase in the underlying equity [4]