CrowdStrike Draws Spotlight with Top-Five ETF Weighting and 90+ Volatility Score
CRWD•Since early June, the iShares Software ETF retraced to its 200-day moving average after rallying over 25% above its 50-day average in May, matching past pullback patterns that have preceded strong rebounds. CrowdStrike ranks among the ETF’s top five holdings with a Schaeffer’s Volatility Scorecard above 90, signaling underpriced options and potential leveraged upside.
1. ETF Pullback and Historical Trend
In May, the iShares Software ETF climbed more than 25% above its 50-day moving average but has since retraced to its 200-day moving average. Such pullbacks have historically set up sector ETFs for renewed upward momentum in subsequent months.
2. CrowdStrike’s ETF Position
CrowdStrike represents one of the five largest positions in the software ETF, positioning the company to capture gains if the ETF resumes its longer-term uptrend. Its inclusion in a heavily weighted basket underscores institutional confidence in its growth prospects.
3. Elevated Volatility Score Signals Underpriced Options
CrowdStrike posts a Schaeffer’s Volatility Scorecard north of 90, indicating that options on the stock have been underpriced over the past year. This suggests that speculative call buyers could gain leverage if implied volatility normalizes.
4. Investor Trading Considerations
The combination of a sector pullback signal and underpriced option premiums offers a potential entry point for investors seeking leveraged exposure. Traders may consider purchasing call options or initiating bullish spreads to capitalize on a rebound in CrowdStrike’s share price.
