PANWPalo Alto Networks, Inc. Common Stock
Options Analysis Report•COMPUTER PERIPHERAL EQUIPMENT, NEC
Market Cap $193.2B|NASDAQ
● 2026-05-15$238.21
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y +23.5%YTD +32.8%7D +14.6%
Options Vol
77,281
30D
Implied Move
±15.7%
IV Rank
64%
PANW Options Overview
IV is elevated with unusual activity. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
4.9
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks5/9 checks passed
IV Rank
≤35%IV Rank 86.4% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.21x — IV premium over HV
Sector Relative≤50%
Sector percentile 54% — above sector median
Term Structure
<1.1xFront/Back 1.03x — flat
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 51.9% — normal range
Spread-Adjusted Value
<80%Effective IV 66.1% (ATM 51.9% + spread 7.1% + bias) — fair
Execution Efficiency
<3.0%Total drag 12.84% (spread 7.10% + slippage 5.74%) — high friction
Vega Efficiency
≥5.0Vega efficiency 106.74 (vega 75.782 / spread 7.10%) — efficient
Sentiment
Bullish or bearish?
5.9
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksNeutral - Weak signal (Conviction: -8%, Raw: +1%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -8% (neutral) — Raw: +1%
OI Skew Magnitude
≥15%|OI skew| 2.0% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +32.3%, OI skew +2.0% — aligned
Conviction Quality
≥2/3 conditions0-DTE 30%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +10%, ATM: +0%, OTM: -1% — neutral (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 46% — neutral vs sector
Activity
Unusual activity?
6.2
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks4/9 checks passed
Volume Surge
≥1.5xVolume 1.6x avg — elevated
Turnover Rate
≥15%Vol/OI 12.4% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days2 day(s) elevated — sustained
OI Build
≥5%OI change +7.8% (5d) — building
Sector Relative≥60%
Sector activity percentile 79% — active vs sector
Trade Quality
≥30%Large trade volume 30% — mixed
Execution Urgency
≥60%Aggressive execution 32% — patient
Flow Conviction
≥30Conviction -8 (bearish) — mixed
Liquidity
Can I trade efficiently?
5.2
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 7.1% — wide
Adequate OI
≥10,000OI 623,364 — deep
Active Volume
≥500Volume 77,281/day — active
Reasonable Cost
≤$0.50$0.35 to cross — cheap
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 55% — neutral vs sector
Order Book Depth
≥100 contractsDepth 189.9 contracts (bid:98.5 ask:91.4) — adequate
Execution Quality
<1.0%Avg slippage 5.74% — poor
Timing
Is now a good time?
7.6
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +2.8% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 86% — seller opportunity
Event Detection
≥10pts kinkIV kink -2.2pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 893.66 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: Earnings in 18d (low risk)
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -8% @ 54% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 60 (ITM 20% + inst 30%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls5.7
bullishIV fair, mixed flow
Long Puts5.1
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put5.8
bullishIV fair, mixed flow
Covered Call5.2
bearishIV fair, mixed flow
For educational purposes only. Not investment advice.