Accenture attracts downside positions

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Accenture popped on a key milestone event last month, but now traders expect a pullback.

optionMONSTER's Depth Charge tracking system detected the purchase of about 3,400 August 62.50 puts, most of which priced for $2.25. Some 2,800 August 55 puts were also bought for $0.15 to $0.20. Volume was above open interest in both strikes, indicating that new positions were opened.

The put buying reflects a belief that the shares will pull back from current highs, potentially filling last month's bullish gap. Overall option volume in the stock is more than twice the average level so far today, with puts accounting for more than three-quarters of the activity, according to the Depth Charge.

ACN's big event was on June 28, when it was announced as a new member of the S&P 500 index. That was a major vote of confidence in the business consultancy, which emerged as an independent company from Arthur Andersen in 2001--shortly before the Enron scandal brought down the venerable accounting firm.

The S&P news drove ACN higher by 3 percent into record territory above $60. It has stayed in that range since but is down 0.55 percent to $61.41 so far today.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: ACN

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