Okta ($OKTA) Q1 FY2026 Earnings Strategy Report – Stabilization, AI Upside, and a Gamma-Driven Setup

This report outlines a high-conviction long trade into Okta’s Q1 FY2026 earnings, supported by rising platform engagement, improved cost control, and growing AI traction across both core identity segments. Workforce Identity Cloud is showing stable daily logins and stronger enterprise retention, while Auth0 (Customer Identity Cloud) appears to be bottoming after 2023 hype cycle fatigue. Search interest in "Okta AI" is climbing, signaling increased enterprise interest in AI-driven access security.

Options flow confirms institutional bullish positioning, with heavy open interest building in the $130–$140 CALL range. Gamma exposure turns materially positive above $125, creating conditions for a reflexive move higher if earnings beat and guidance includes upside ARR or margin commentary. Recent breakout above the $115–$118 range confirms a technically supportive setup, with room toward $135–$140. A long position is established via the $140 CALLs expiring May 30, with an average cost basis of $2.20–$2.80 per contract.

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Okta Earnings Analysis.pdf

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