Options/PANW

PANWPalo Alto Networks, Inc. Common Stock

Options Analysis Report•COMPUTER PERIPHERAL EQUIPMENT, NEC

Market Cap $302.8B|NASDAQ

● 2026-08-28$371.59

NEUTRAL

Analysis: 2026-08-27 EOD data

1Y +95.0%YTD +107.2%7D +3.8%

Options Vol

65,730

30D

Implied Move

±19.3%

IV Rank

43%

PANW Options Overview

IV is elevated. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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PANW Gamma Walls

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Value

Is IV priced right?

4.0

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks5/9 checks passed

IV Rank

≤35%

IV Rank 97.0% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 1.04x — IV ≤ HV

Sector Relative≤50%

Sector percentile 87% — above sector median

Term Structure

<1.1x

Front/Back 1.55x — backwardation

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 63.8% — normal range

Spread-Adjusted Value

<80%

Effective IV 79.3% (ATM 63.8% + spread 7.7% + bias) — fair

Execution Efficiency

<3.0%

Total drag 14.91% (spread 7.74% + slippage 7.17%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 9.32 (vega 7.215 / spread 7.74%) — efficient

Sentiment

Bullish or bearish?

5.5

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksNeutral - Weak signal (Conviction: +1%, Raw: +6%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +1% (neutral) — Raw: +6%

OI Skew Magnitude

≥15%

|OI skew| 0.5% — balanced

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew +14.1%, OI skew -0.5% — divergent (opposite)

Conviction Quality

≥2/3 conditions

0-DTE 33%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: +16%, ATM: -3%, OTM: +7% — neutral (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 58% — bearish vs sector

Activity

Unusual activity?

4.9

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks2/8 checks passed

Volume Surge

≥1.5x

Volume 2.0x avg — hot

Turnover Rate

≥15%

Vol/OI 11.6% — normal turnover

Multi-Day Persistence

≥2 days

1 day(s) elevated — may be one-day event

OI Build

≥5%

OI change -7.3% (5d) — unwinding

Sector Relative≥60%

Sector activity percentile 73% — active vs sector

Trade Quality

≥30%

Large trade volume 11% — mostly retail

Execution Urgency

≥60%

Aggressive execution 23% — patient

Flow Conviction

≥30

Conviction +1 (bullish) — mixed

Liquidity

Can I trade efficiently?

4.9

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks4/8 checks passed

Tradeable Spread

≤5.0%

Spread 7.7% — wide

Adequate OI

≥10,000

OI 568,905 — deep

Active Volume

≥500

Volume 65,730/day — active

Reasonable Cost

≤$0.50

$0.39 to cross — cheap

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 87% — much wider than sector

Order Book Depth

≥100 contracts

Depth 102.3 contracts (bid:47.3 ask:55.0) — adequate

Execution Quality

<1.0%

Avg slippage 7.17% — poor

Timing

Is now a good time?

7.1

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks7/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope +55.1% — backwardation

IV Percentile Clarity

<30 or >70

IV percentile 97% — seller opportunity

Event Detection

≥10pts kink

IV kink 27.5pts — event priced

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 3.19 — favors income trades

Expiration Distribution

≥3 expirations

5 liquid expirations — flexible

Event Risk

≥60% (safe)

caution advised: Earnings in 4d (elevated risk)

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +1% @ 50% consistency — unclear

Smart Money Timing

≥40 composite score

Score 41 (ITM 20% + inst 11%) — moderate institutional

Directional Strategy Fit

Option Buyers

Long Calls5.1

bullishIV fair, mixed flow

Long Puts4.8

bearishIV fair, mixed flow

Premium Sellers

Cash-Secured Put5.8

bullishIV fair, mixed flow

Covered Call5.4

bearishIV fair, mixed flow

For educational purposes only. Not investment advice.

Earnings · week of Aug 31

Options price a ±9.4% move into PANW's Sep 1 earnings

PANW reports on Tuesday, September 1 after the close. The at-the-money straddle covering that report prices a ±9.4% move — roughly $336.66 to $406.52 from $371.59. PANW has averaged ±5.0% on its last 7 earnings reactions (biggest: 7%), so this print is priced at 1.9× its own history.

1.9× RICHimplied ±9.4%history ±5.0%Sep 4 expiry

See the implied move for every US stock reporting the week of Aug 31

Implied move = the live at-the-money straddle for the expiry covering the report (Sep 4); it shifts intraday. Historical move = the average of PANW’s own 1-day earnings reactions over its last reported quarters — a reference, not a forecast.