Bulls Swarm Cybersecurity Stocks; FireEye Inc (FEYE) in Focus

Cybersecurity stocks are in focus today, with FEYE grabbing attention among option bulls

Aug 5, 2015 at 12:31 PM
facebook X logo linkedin


FireEye Inc (NASDAQ:FEYE) and its sector peers are higher, and StockTwits is abuzz with unconfirmed buyout rumors surrounding FEYE and International Business Machines Corp. (NYSE:IBM). Meanwhile, cybersecurity is in focus on Capitol Hill, with the U.S. Senate considering the Cybersecurity Information Sharing Act of 2015, which some speculate could translate into hefty government contracts for cybersecurity companies. It's also the focus in Las Vegas, where security professionals gathered for the Black Hat conference to discuss cybercrime and vulnerable businesses.

Whatever the driving force, FEYE is up 3.3% at $44.88, and calls are trading at three times the normal intraday clip, with eleventh-hour speculators buying to open the weekly 8/7 44.50-strike call. The calls will gain value the higher FEYE climbs north of $44.50 through Friday's close, when the contracts expire. 

This affinity for calls marks a change of pace for FEYE. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio sits at an annual high of 0.47. In other words, option buyers have picked up FEYE puts relative to calls at a much faster-than-usual clip during the past 10 weeks. 

On the charts, FEYE has gained more than 42% in 2015, with pullbacks contained by its 32-week moving average. After a poorly received earnings report last week, FEYE retreated, and its 14-day Relative Strength Index (RSI) was docked at 35 by Tuesday's close -- on the cusp of oversold territory. Should FEYE resume its long-term uptrend, a mass exodus of bears could add fuel to the stock's fire. 

Meanwhile, Cyberark Software Ltd (NASDAQ:CYBR) has added 4.5% to flirt with $60.14, and VASCO Data Security International, Inc. (NASDAQ:VDSI) is up 3.2% at $19.40. Palo Alto Networks Inc (NYSE:PANW) has gained 1.8% to dock just south of $189, while Fortinet Inc (NASDAQ:FTNT) has followed suit, up 1.8% at $48.51.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI