FireEye Stock Extinguished After Security Breach

The news is attracting lots of attention from options traders

Digital Content Manager
Dec 9, 2020 at 11:01 AM
facebook twitter linkedin


FireEye Inc (NASDAQ:FEYE) is feeling the heat today after the cybersecurity firm disclosed that it was attacked by a "highly sophisticated cyber threat actor," and that its internal hacking tools -- which are typically reserved to privately test the cyber defenses of its own clients -- were stolen. This news has tanked the security, which is down 12.2% at $13.63 at last check. 

This marks a setback for FEYE, which had been steadily climbing back up the charts following an early September pullback. While shares were able to recoup fairly quickly, reclaiming the 40-day moving average as an area of support in October, the equity is slipping back below this trendline today. Year-to-date, FEYE is down 17.6%. 

Short sellers were hitting the exits in droves after FireEye stock's recent climb. Short interest dropped 7.9% in the last reporting period, though the 22.87 million shares make up 10.7% of the stock's available float, or over a week's worth of pent-up buying power. Today's price action would have given these bears something to celebrate, had FEYE not just landed on the short-sale restricted (SSR) list. 

Options players are coming out in droves, though. So far, 20,000 calls have crossed the tape, or four times the intraday average, compared to 14,000 puts -- a whopping 25 times what is typically seen at this point. The December 14 call is the most popular, followed by the weekly 12/11 13.50-strike put, with positions being opened at both. 

 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners