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Options Corner: CRWD Ahead of Earnings
Youtube· 2025-12-01 14:16
Core Viewpoint - Crowdstrike has significantly outperformed the S&P 500 and the overall tech sector, with a 47% increase over the past year compared to the S&P's 13% rise [2][12]. Company Performance - Crowdstrike is highlighted as a standout in the cybersecurity sector, outperforming peers like Zcaler, Checkpoint, Palo Alto, Fortinet, and Sentinel [2][3]. - The stock has shown a notable price activity pattern, breaking an upward trend line and entering a downward sloping channel, with resistance observed around the $512 level [4][5]. Technical Analysis - The moving averages indicate a stagnation in price momentum, clustered between $500 and $518, suggesting slowing momentum [7]. - The Relative Strength Index (RSI) has broken its trend line and is nearing a bullish crossover above the 50 midline, which could indicate a potential upward movement if confirmed [8]. - Heavy trading volume is concentrated between $570 and $510, with a significant support level around $430 if the stock moves lower [9]. Expected Market Movements - The expected price movement for the end of the week is approximately 7.7%, while for December, it is about 10.7%, aligning with notable price levels [10][11]. Trading Strategy - A proposed trading strategy involves a short-term unbalanced put butterfly option, allowing for profitability if the stock remains above a key break-even point of $485.50, with a cushion of about 4% to the downside [12][15][16].