Q2 STOCKS TO BUY

Sector Tailwinds Spark Bullish Betting On FireEye Inc (FEYE)

FireEye Inc (FEYE) is having a rare day in the sun, sending bulls into its option pits

Jan 13, 2016 at 11:18 AM
facebook X logo linkedin


FireEye Inc (NASDAQ:FEYE) is getting a big boost today as M&A buzz swirls around its sector peer. The upside move has the stock's options pits in overdrive -- especially on the call side of the fence, where intraday volume is at triple the norm. Also, FEYE's 30-day at-the-money implied volatility earlier jumped to an annual high of 91.6%.

Diving right in, the March 22 call is seeing the most action by far, and Trade-Alert suggests traders are opening long positions here. In so doing, these speculators anticipate FEYE will topple $22 by March expiration. However, delta on the deep out-of-the-money option is just 0.32, indicating the options market is giving it a 32% chance of being in the money at expiration.

Over the past 10 weeks, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been extremely call-focused. Specifically, FEYE's 50-day call/put volume ratio rests at a 12-month high of 5.83, with nearly six calls bought to open for each put. Echoing this, at 0.46, the stock's Schaeffer's put/call open interest ratio (SOIR) has never been lower in the prior 52 weeks.

That's a lot of optimism for an underperformer like FireEye Inc (NASDAQ:FEYE). While the shares have added nearly 8% today at $18.13, they're down 67% since notching an annual high of $55.33 in mid-June, and on Monday touched a record low of $16.39. If the stock resumes its longer-term trend lower, a capitulation among bullish option bettors could result in headwinds.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter