Accenture investor keeps protection

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Accenture has been working higher, but one investor is apparently tightening protection.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 5,000 January 60 puts for $2.60 and the sale of an equal number of January 57.50 puts for $1.62. Volume was below open interest in the lower 57.50s but not the 60s, which indicates that a protective position was rolled from one contract to the other.

The trader probably owns shares in the IT-consulting firm and is using the contracts as a hedging instrument . Adjusting the puts cost $0.98 and will increase by $2.50 the level at which they have a right to sell the stock. The move essentially increases their level of protection and thus locks in more gains. (See our Education section)

ACN is up 3.08 percent to $60.18 today and has risen 12 percent in the last month. The company's earnings have repeatedly beaten estimates amid growing demand from businesses. Its next release is scheduled for after the bell on Dec. 15.

Overall option volume is 5 times greater than average so far today, with puts outnumbering calls by 8 to 1.




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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As of 12/17/2014, 04:15 PM


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