When I last looked at FireEye Inc (NASDAQ:FEYE) about a month ago, FEYE stock was in rebound mode and looking to challenge overhead resistance at $12. Unfortunately, technical resistance in the area proved stalwart, and FireEye was rejected soundly.

However, while the Mar $12/$13 bull call spread I highlighted in early February is on its last legs heading into expiration next week, the Mar $10 put sell is going strong, bolstered by renewed support at $11.

Given the market blowback on FEYE stock, and the stiff overhead resistance, a more cautious approach may be warranted going forward. I have a couple of trade ideas.

FireEye Sentiment and Backdrop

All the bad news derived from FireEye’s earnings report appears to be factored into the stock, so all FEYE traders are waiting for is a bit of good news. Pretty much any good news as this point should bolster buying activity for the shares.

As I noted last month, there are plenty of potential drivers waiting to react to any such positive developments.

For instance, Thomson/First Call data indicates that 22 of the 31 analysts following FEYE stock rate the shares a “hold” or worse, with the one lingering “sell” rating from February merging into the “hold” masses. The 12-month consensus price-target of $13.77, meanwhile, represents a healthy 24.5% premium to Friday’s close.

Meanwhile, short interest remains another potential driver. FireEye stock’s retreat from the $12 region emboldened short sellers over the last month. During the most recent reporting period, the number of shares sold short rose by 6% to 25 million.

While the increased selling pressure likely helped prevent FEYE stock from taking out resistance at $12, the shares resilience in the $11 region should give these bears pause.

Turning to the options pits, FireEye remains a bullish favorite among near-term speculators. Looking past March’s soon-to-expire options in favor of April, we find that the put/call open interest ratio rests at a considerably bullish reading of 0.3, with calls more than tripling their bearish counterparts.

Click to Enlarge Peak call OI for FEYE stock is a bit conservative, totaling more than 3,000 contracts at the in-the-money $10 strike. But, with FireEye rangebound for the past month, a bit of caution is warranted.

As for April implieds, options are pricing in a potential move of about 13.5% for FEYE stock, as volatility remains a central focus for the shares. This places the upper bound at $12.49, while the lower bound rests at $9.51.

2 Trades for FEYE Stock

Put Sell: Sticking with our theme of caution on FEYE stock, a bullish-to-neutral April $10 put sell emerges as an effective way to profit from the share’s recent sideways trend.

At last check, this put was bid at 29 cents, or $29 per contract. As always with put sell trades, you keep the initial premium received as long as FEYE stock closes above $10 when April options expire. However, if FireEye trades below $10 ahead of expiration, you could be assigned 100 shares of stock for every put sold at a cost of $10 per share.

Call Spread: For those willing to take a risk on a potential FEYE rally back to $12, an April $11/$12 bull call spread has potential.

At last check, this spread was offered at 39 cents, or $39 per pair of contracts. Breakeven lies at $11.39, while a maximum profit of 61 cents, or $61 per pair of contracts, is possible if FEYE stock closes at or above $12 when April options expire.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.