Weekly Calls Hot on FireEye, Inc. (FEYE) Amid Halo Lift

Weekly 5/8 call buyers set their sights on rallying FireEye Inc (NASDAQ:FEYE)

by Karee Venema

Published on May 8, 2015 at 2:01 PM

FireEye Inc (NASDAQ:FEYE) is getting a halo lift from sector peer Cyberark Software Ltd (NASDAQ:CYBR) today, and was last seen 3.5% higher at $41.73. In the options pits, calls are trading at a slight mark-up to what's typically seen at this point in the day, with a number of eleventh-hour speculators eyeing additional gains through tonight's close.

In fact, FEYE's three most active options are the weekly 5/8 41-, 42-, and 42.50-strike calls, and it looks as if new positions are being purchased at each strike. In other words, traders are rolling the dice on the equity to continue its rally through session's end, when the weekly series expires.

Widening the sentiment scope reveals option traders have been initiating long puts -- relative to calls -- at a faster-than-usual clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FEYE's 10-day put/call volume ratio of 0.48 rests in the 77th percentile of its annual range.

On the charts, the stock has been a standout in 2015, tacking on roughly 32%. More recently, the shares pulled back to their 80-day moving average in the wake of FireEye Inc's (NASDAQ:FEYE) own earnings-induced pop and bounced, suggesting a sturdy layer of support is in place.

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