FireEye, Inc. (FEYE) Traders See Upside Ahead

FireEye Inc (FEYE) has been running higher amid cybersecurity concerns

Digital Content Group
Feb 13, 2015 at 2:37 PM
facebook twitter linkedin


FireEye Inc (NASDAQ:FEYE) is crushing it this afternoon -- following sector peer Cyberark Software Ltd (NASDAQ:CYBR) north -- in the wake of another price-target hike. This time, Imperial Capital raised its target to $42 from $32, while reiterating an "in-line" rating. Not surprisingly, options traders have responded by targeting calls.

Taking a quick step back, FEYE calls are crossing at nearly quadruple the expected intraday rate, and outnumber puts by a roughly 5-to-1 margin. According to data from the International Securities Exchange (ISE), the March 44 call is seeing buy-to-open activity, as speculators gamble on additional upside through the close on Friday, March 20 -- when the back-month options expire.

At last check, FEYE shares were up 5% at $41.62, bringing their year-to-date advance to about 32%. What's more, the stock has outperformed the broader S&P 500 Index (SPX) by 35 percentage points over the last two months.

FireEye Inc (NASDAQ:FEYE) has also likely benefited from increased attention in the wake of several high-profile cyberattacks. Today, in fact, President Barack Obama is hosting a summit to address the intensifying need for online security, with FEYE earlier announcing an intelligence-sharing initiative.

Daily Chart of FEYE since November 2014

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1