trades& tactics
DO DILIGENCE
QU I E T FOU N DAT I O N HELPS INV ESTO RS FIND NEW T RADING O P P O RT UN I TI ES
Hacker Hedges The Alpha Boost system uses complex algorithms to find a mixture of strategic options trade ideas By James Blakeway
The table below shows four cybersecurity stocks with liquid options markets.
Name
I
James Blakeway serves as CEO of Quiet Foundation, a data science-driven subsidiary of tastytrade that provides feefree investment analysis and trade ideas for self-directed investors @jamesblakeway
12-month price change
Three-month correlation with S&P 500
Palo Alto Networks Inc
PANW
87%
0.11
Okta Inc
OKTA
-1%
0.20
ZS
71%
0.33
NLOK
15%
0.35
SPY
26%
1.00
Zscaler Inc
t feels as though a computer hack at a Fortune 500 company makes headlines about every other week. As a result, most cybersecurity stocks shrugged off the systemic selloffs of 2020 and rallied to new highs and meteoric returns. As with any investment sector, some cybersecurity companies have liquid, tradeable options markets. Trades in these stocks may be compelling, given the relatively low correlations to the S&P 500. Luckbox used the new Alpha Boost trade generation system to find both bullish and bearish trades in three of the top cybersecurity stocks.
Symbol
NortonLifeLock Inc S&P 500 ETF (benchmark)
Note: Data as of Oct. 4
Alpha Boost, a free trade idea service, delivers strategic options strategies via email three times a week. Each email includes five to 10 trade ideas for stocks and exchange-traded funds (ETFs). An algorithmic trade generation system finds the trades.
More Alpha Diversified trading ideas in your inbox
52
Luckbox | November 2021
2111_TRADES_dodiligence.indd 52
10/7/21 9:38 PM