FireEye, Inc. (FEYE) Bears Bet On a Pullback

FireEye Inc (FEYE) puts are trading at three times the usual intraday clip

by Andrea Kramer

Published on Mar 4, 2015 at 11:25 AM
Updated on Apr 20, 2015 at 5:32 PM

Cybersecurity titan FireEye Inc (NASDAQ:FEYE) is succumbing to broad-market headwinds today, down 2.7% at $43.86. What's more, despite the stock's longer-term uptrend -- the shares are 39% higher in 2015 -- option players continue to gamble on a steep pullback.

FEYE puts are trading at three times the average intraday clip, with the April 43 put leading the charge. The International Securities Exchange (ISE) confirms a big block of the puts was bought to open, as the trader expects FEYE to make a notable move south of $43 by the close on Friday, April 17, when the back-month options expire.

However, today's preference for bearish bets is nothing new for FEYE. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.00 stands higher than 99% of all other readings from the past year, implying short-term traders have rarely been more put-biased.

As alluded to earlier, FireEye Inc (NASDAQ:FEYE) has been outstanding on the charts, outperforming the broader S&P 500 Index (SPX) by nearly 46 percentage points during the past three months. As such, the equity's 14-day Relative Strength Index (RSI) now sits at 67 -- in overbought territory, suggesting the equity's breather may have been in the cards. Off the charts, FEYE is presenting this afternoon at a Morgan Stanley tech conference.


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