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

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

Digital Content Group

Mar 23, 2015 at 11:30 AM

FEYE
CYBR

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.

Follow @Schaeffers

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!