Calls Hot as FireEye, Inc. (FEYE) Gets a Lift

FireEye Inc (FEYE) is getting some help from a sector peer


Published on Mar 23, 2015 at 11:30 AM
Updated on Apr 20, 2015 at 5:32 PM

FireEye Inc (NASDAQ:FEYE) is 1.2% higher today at $42.18, thanks to a halo lift from sector peer Cyberark Software Ltd (NASDAQ:CYBR). In FEYE's options pits, over 3,000 calls have changed hands -- more than double the amount of puts. Leading the pack is the April 43 call, which it seems traders are buying to open in hopes of the shares toppling $43 by the close on Friday, April 17, when the contracts cease trading.

Even though call buying has occasionally been popular, put buying has been the predominant strategy recently, despite FEYE's 33.8% year-to-date lead. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.47 is higher than 77% of all other readings from the past year.

Analysts, too, have seemingly overlooked the stock's tenacity. Ten of 21 covering brokerage firms maintain "hold" or worse recommendations on the shares. Also, FireEye Inc (NASDAQ:FEYE) is only a chip-shot away from its consensus 12-month price target of $43.35. A round of analyst upgrades and/or price-target hikes could boost the shares going forward.

Daily Chart of FEYE since October 2014

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