Accenture is near all-time highs, and investors are heading for
optionMONSTER's tracking programs detected the sale of more than
7,800 December 62.50 calls for $4.60 to $5.40. Volume was more than
100 times previous open interest at the strike, indicating that new
positions were initiated.
ACN rose 0.99 percent to $68.02 yesterday. The IT consultancy is up
28 percent so far this year and is hovering a few dollars from its
record peaks. The
apparently wanted to lock in profits on winning positions.
The traders are now obligated to unload their shares for $62.50 if
they are above that level on expiration. Including the credit
earned, their exit price will be $67.10 to $67.90. ACN was trading
for about $1 lower when the calls changed hands, so they also
picked up some additional income in the form of option premium by
selling the contracts.
Their main risk now is a big selloff because that would leave them
long shares at a lower price, but they'd be partly compensated
because the calls sold short would become worthless. (See our
section for more on how options can be used to
Some 13,500 contracts traded in the session, almost 9 times greater
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