76.85 -0.76 (-0.99%) Buy

CYBR investors herd to book profits while the going is good

13 min read

CYBERARK SOFTWARE LTD. (Foreign) has destroyed investor wealth today. It delivered -0.99% to close at 76.85. During the last week it surged by +1.9% and saw a maximum drawdown of -2.17% before bouncing back.

[Themes containing CYBR]

CYBR is currently in a bullish trend. The previous long signal in CYBR has not been profitable for investors in general. If you are invested in CYBR at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


CYBR has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 17 Jan, 2018 to 12 Dec, 2018. Over the last 2 years 11 months and 9 days, CYBR outperformed the SP500 index on 55% days.

CYBR was profitable on 55% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's worst daily return of -9.62%, during this period, on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 21 Sep, 2018 and went on till 28 Sep, 2018. This bullish trend returned +10.27% to investors.

The last 12 months saw CYBR's investors making profits in 10 months and incurring losses in 2 months. During the last year, CYBR delivered profits in more months than SP500 index. CYBR significantly outperformed SP500 index in Aug 2018, when it returned +24.23% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CYBR and SP500 index, both had periods of 6 consecutive profitable months.

Opportunity is missed by most people because it is dressed in overalls and looks like work.
-- Thomas Edison

CYBR is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CYBR's volatility from 26 Sep, 2018 to 19 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CYBR has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in CYBR derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than CYBR. Therefore, SP500 must receive a lower allocation than CYBR in your portfolio. SP500 index usually has shorter drawdown period than CYBR.

On a general note (since you are interested in CYBR), two instruments that deserve special mention are NSPR and ~SMALLCAP. They have significantly outperformed the overall market.

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