Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Option Bears Predict Lower Lows for FireEye Inc (FEYE)

Short-term contracts are in demand in FireEye Inc's options pits

by 5/7/2014 2:44 PM
Stocks quoted in this article:

Option Brief: Put traders are pouring into FireEye Inc's (NASDAQ:FEYE) options pits this afternoon, as 32,000 contracts are on the tape -- nine times the intraday norm. Of course, this is occurring amid the tech stock's 26.3% dive, following last night's mixed first-quarter earnings report, which included a lowered current-quarter and full-year outlook, and which prompted a number of price-target cuts this morning. At last check, FEYE was hovering at $27.35.

In the options pits, traders are favoring short-term options, with each of the three most active strikes expiring at this Friday's close. At the top of the heap is FEYE's weekly 5/9 27-strike put, where 4,627 contracts have changed hands -- the majority at the ask, suggesting they were bought. In addition, volume outstrips open interest at the newly near-the-money strike, indicating fresh bearish bets are being initiated. Some of this increased negative attention is likely due to the stock's short-sale restricted designation, as would-be short sellers look for alternative ways to bet against FEYE. Against this backdrop, the security's 30-day at-the-money implied volatility hit a 12-month high earlier today.

In a nutshell, the put buyers are looking for FEYE shares to dive even further by weekly options expiration, two-plus sessions from now. Specifically, they're hoping the stock breaches the 27 strike by Friday's closing bell, which would represent record-low territory. In fact, the current all-time low of $27.05 was touched earlier today. On the other hand, if FireEye Inc (NASDAQ:FEYE) remains above the strike through the option's lifetime, the most the speculators will part with is the initial cash outlay.


Featured Brokers
Unusual Option Volume
Option Flow
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.