Now 8 months later, it looks like it's going. Don't think much of this company in particular, but I like the cybersecurity sector. FEYE is +32% this quarter, which has been a rough one on most stocks.
Too funny ADA, after you posted awhile back that you were looking to cybersecurity, I started looking at this again. It still hasn't managed to break out of the trading range. Last week it tried, it up-thrusted the range with shortening of thrust due to lack of demand I think because the funds and specs just weren't ready to take the baton in this recent bearish market mood. Just need to be patient I think...let it come into that 16.71 support and give it another think. One of my worst faults is forgetting to check back. Glad you're watching it too.
Not ready to buy a new set of deep ITM calls yet, but think it's time to sell some way out of the money autumn puts. Like @ 13 strike.
I'm liking FEYE here, roughly in a 14-18 trading range (until it isn't--ha ha!). So yesterday I set out to play the middle of the range with Jan 2020 Calls and fund the purchase with cash-secured (~$1,600 maintenance) naked Puts in this credit spread: Buy 5 x 15.0 C Sell 5 x 17.0 C Sell 10 x 11.0 P If it came to it next January, I'm pretty sure I'd be happy to buy 1000 shares at 11, or roll the Puts out to 2021. Depending on future ER and other fundamentals, I'd likely purchase near-the-money Jan 2021 Calls if FEYE tests the 10 to 12 dollar range again.
Back in May when FEYE was trading around 14.5, I entered a Jan 2020 Call spread and funded the purchase with cash-secured naked Puts. You can see the positions a couple posts above. With FEYE over 17 last week, the option play pretty much maxed out on the profit side. I also wrote back in May: "Depending on future ER and other fundamentals, I'd likely purchase near-the-money Jan 2021 Calls if FEYE tests the 10 to 12 dollar range again." Well. FEYE never tested 10 to 12 again. Looking at the chart today, I'm thinking if FEYE behaves similarly, and drops into the 14-to-15 range, it may be time to try the credit spread again with Jan 2021 options. And if it drops down to 10-to-12, I still think I'd load up on Calls. This was the option position last Thursday shortly before closing the Call side:
Well, here we are again with another FEYE opportunity. There is a bearish indicator on the weekly with the 50 MA death-crossing over the 200 MA, but I'm not gonna worry much about it as I'm playing some reversion to the mean here. This time around, I established the following option positions with Sept 2020 expiration for about $60 credit: Buy 5 x 13.0 C Sell 5 x 15.0 C (note that the MA crossover is around 15.4) Sell 10 x 10.0 P If it came to it in September, I'm pretty sure I'd be happy to buy 1000 shares at 10, or roll the Puts out to Jan 2021 or beyond.
