I’ve yet to hear anyone of the mainstream media market hacks say a thing about CYBR (Cyberark Software LTD ORD) that has shot up at over +66% or a Net Change of +$25 in the past ten days.
We did an entry on 2/10/2015 – preliminary to the White House’s Cybersecurity Order signed into legislation on 2/15/2015.
CYBR was an IPO last year. We invested in it as one of the most promising up and coming equities to own in 2015 in our IPO equity portfolio.
As you can see on the chart, we invested in the FEB Option Chain – Long Call at the Strike price 35. The Bid premium was $.75 and Ask was $1.05 – a fairly wide spread. Today, on the final day before FEB Expiration, we hit a $11,300 profit.
CONTEXT AROUND THIS TRADE
Considering all Hype formula kick-started by “The Interview” and Sony Pictures being hacked (a great clandestine story in and of itself) these are the kind of “fundamental” plays that one can calculate a strong probability of profit as this issue continued to be front page news, peaking with the White House move to start a more aggressive program on combating cyber-hacking warfare.
BACK STORY – 2007 – ESTONIA’S BOTNET ASSAULT FROM KREMLIN
Many probably don’t recall that years ago Estonia was the victim of the first “country wide botnet assault” that completely shut down the country by the Russian Kremlin, when the state moved a 6-foot bronze statue memorial for the fallen Soviet Union Red Army soldier’s in WWII from Tallinn’s main square, out to the Russian soldier’s cemetery. Not only did this result in riots in the capitol city’s streets, the demonstrators actions were a prelude to what was to come next: The Kremlin’s all out assault on Estonia’s IT servers.
(Of the three Baltic States, Estonia is the least tolerant of Russian citizens living in their country. Contrary to this prejudice, Lithuania gave Carte Blanche citizenship to all Russians working in their country when the Soviet Union collapsed. Still, as former residence of the Baltics, I wouldn’t speak Russian outside of the capitol cities, as it would bring a wrath of knife stabbing stares and deliberate “cold shoulders”.)
As reported by WIRED: “Hackers Take Down The Most Wired Country in Europe”
“All major commercial banks, telcos, media outlets, and name servers — the phone books of the Internet — felt the impact, and this affected the majority of the Estonian population. This was the first time that a botnet threatened the national security of an entire nation.”
OVERVIEW GRAPHIC OF ESTONIA’S BOTNET ATTACK IN 2007
At the time, the only counterattack experts in this matter comprised of a handful of cybercops – called the Vetted. A select few that could access the largest ISPs to “kick rogue computers off the network.”
FROM CYBER HACKER WITH LOVE
If you want to bring down a country’s information infrastructure and you don’t want anyone to know who did it, the weapon of choice is a distributed denial of service attack. Using rented botnets, you can launch hundreds of thousands — even millions — of infobombs at a target, all while maintaining total deniability. WIRED MAGAZINE: ISSUE 15.09
Today, CISCO (CSCO), Juniper (JNPR) and China’s Huawei networking devices et. al. are the high technology “cyber spies” for the front lines of burrowing their way into the security architecture of foreign countries, namely China and now North Korea.
(When I was working as an advisor in security surveillance for international cargo container shipping, I was told that certain US manufactured Internet servers sent to China’s universities, were rigged to send back their scientific research undetected.)