18.86 -0.85 (-4.51%) Buy

FEYE investors herd to book profits while the going is good

13 min read

FIREEYE, INC. delivered massive losses today. It returned -4.51% to close at 18.86. During the last week it returned -3.78% and saw a maximum drawdown of -6.68% before bouncing back.

[Themes containing FEYE]

FEYE is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +16.28%) for FEYE's investors than trading long signals.


FEYE has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, FEYE underperformed the SP500 index on 49% days. Which indicates that on days FEYE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

FEYE was profitable on 56% days in the last three months. During this time, it delivered on average +0.29% per day. It delivered it's best daily return of +9.73%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bearish trend during this period which started on 16 Nov, 2018 and went on till 20 Nov, 2018. The trend delivered -6.36% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +12.94% to investors.

On monthly basis, FEYE delivered profits in more months over the last year, than losses. FEYE delivered profits less regularly than SP500 index. FEYE significantly outperformed SP500 index in Feb 2018, when it returned +10.01% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. FEYE had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both FEYE and SP500 index significantly outperform during months when quarterly/annual results are announced.

Every time you borrow money, you're robbing your future self.
-- Nathan W. Morris

FEYE is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in FEYE's volatility from 13 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FEYE has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in FEYE derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than FEYE. Therefore, SP500 must receive a lower allocation than FEYE in your portfolio. SP500 index usually has shorter drawdown period than FEYE.

Based on your interest in FEYE you may find it interesting to know that TPNL and PRQR have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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