FireEye, Inc. (FEYE) Short-Term Bear Eyes More Downside

One put buyer is jumping on FireEye Inc (FEYE) amid a rare stint of weakness

by

Published on Apr 17, 2015 at 11:07 AM
Updated on Apr 20, 2015 at 5:32 PM

Put volume is running at double what's normally seen around midday in FireEye Inc's (NASDAQ:FEYE) options pits. On a closer look, much of today's action comes from one trader, who bought to open 1,000 contracts at the weekly 4/24 39-strike put. Paying a premium of $0.40 apiece, the speculator handed over a total of $40,000 (premium paid * number of contracts * 100 shares per contract) to wager on the shares falling below $39 by next Friday's close, when the weekly series expires.

Coming into today, short-term speculators had actually been more call-skewed than normal. This, according to FEYE's Schaeffer's put/call open interest ratio (SOIR) of 0.60, which ranks in the 33rd annual percentile. With the equity's elevated short interest, though, there's always a chance that increased interest in calls could be related to short sellers hedging their bets. Specifically, 13% of the equity's float is sold short, accounting for nearly a week's worth of trading, at normal daily volumes.

FEYE SOIR

The heavy short interest is somewhat strange, given FireEye Inc's (NASDAQ:FEYE) technical history. So far in 2015, the shares have gained 30%, and should it add to this impressive lead, some of the weaker shorts could hit the exits and create a fresh wave of buying power. Today, though, FEYE is 2.3% lower at $41.05.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.