FireEye, Inc. (FEYE) Calls Hot on Whitman Nod

FireEye Inc (FEYE) is sizzling, thanks to a positive mention from Hewlett-Packard Company (HPQ) CEO Meg Whitman

by Alex Eppstein

Published on May 22, 2015 at 10:39 AM

FireEye Inc (NASDAQ:FEYE) has jumped 4.3% this morning to trade at $45.14, following a plug from Hewlett-Packard Company (NYSE:HPQ) CEO Meg Whitman during an interview with CNBC.  As such, FEYE calls are flying off the shelves at four times the usual intraday rate, and three times the pace of puts.

The cybersecurity stock's most active strike is the out-of-the-money June 46 call, which is seeing possible buy-to-open activity. By initiating these positions, option bulls anticipate FEYE will topple $46 by the close on Friday, June 19, when the front-month series expires. The shares haven't explored territory north of $46 since late February, but delta on the option has jumped to 0.45 from 0.30 at Thursday's close, signaling growing odds of an in-the-money finish.

A capitulation among skeptics on Wall Street could give FEYE the boost it needs. For instance, half of the analysts tracking the stock consider it a "hold" or worse, and its average 12-month price target of $47.50 stands at a slim 5.2% premium to current trading levels. Also, 11.6% of the equity's float is sold short, suggesting there's plenty of sideline cash available to fuel a short-covering rally.

On a longer-term basis, FireEye Inc (NASDAQ:FEYE) has been impressive. Since the end of 2014, the shares have surged over 43%, ushered higher by their 80-day moving average.


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


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Spotify Stock Shaky as Amazon Eyes Podcasts
Amazon's interest in podcasts puts SPOT in focus
AZO Shifts Higher After Earnings
AutoZone's fiscal third-quarter results beat estimates
One New Company Looks Ready To Clean Up On China’s Lithium Mess
Click to continue to advertiser's site.