Call Spread on PANW on 8/14/2014

Palo Alto Networks (PANW) offers network security services.

The company’s platform comprises Next-Generation Firewall that delivers application, user, and content visibility and control. It delivers its platform in the form of a hardware or virtual appliance, and includes a suite of subscription services, as well as support and maintenance services. The company’s products include firewall appliances; Panorama, a centralized security management solution for the global control of appliances deployed on an end-customer’s network as a virtual appliance or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with the appliance. Its subscription services include threat detection and prevention, URL filtering, laptop and mobile devices protection, and malware and threats protection. The company also offers professional services, which include on-location planning, designing, and deployment of security solutions; application traffic management, solution design and planning, configuration, and firewall migration; and education services. Its platform enables enterprises, service providers, and government entities to identify, control, and safely enable applications running on their networks, as well as protect against cyber threats in real time. The company serves the enterprise network security market, which consists of firewall, unified threat management, Web gateway, intrusion detection and prevention, and virtual private network technologies. The company primarily sells its products and services through its channel partners, as well as directly to end-customers operating in various industries, including education, energy, financial services, healthcare, Internet and media, manufacturing, public sector, and telecommunications.

52-Week Trading Range: $40.36 - $87.79

Last Trade: $85.75

Here is the trade: Shares have formed a bullish "cup and handle" and are in the process of moving higher out of this formation. Shares hit a new all time high today but due to Cisco's miss, the sector is down. We will use to establish a position.

Trade Buy 1 September $85.00 Call at $5.30 Sell 1 September $90.00 Call at $3.15 For a net debit of $2.15 Profit/Loss Analysis Breakeven at $87.15 Maximum profit is $285.00 at strike of $90.00 Maximum loss is ($215.00) at strike of $85.00 Closing Summary Sold 1 September $85.00 Call at $6.45 Bought 1 September $90.00 Call at $1.40

Position closed on 9/2/2014 at price of $5.05 with a 134.88% gain in 19 days.

Updates

9/2/2014 3:49:03 PM

We are taking profits on PANW Call Spread. PANW last traded at $89.85.

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