Bears think Intuit is ready to write off


Intuit has rallied to its highest price since the days of the dot-com bubble, and now the bears are looking for a correction.

optionMONSTER's Depth Charge tracking system detected the purchase of about 9,350 October 37.50 puts for $1.08 to $1.10, and the sale of about 6,442 October 34 puts for $0.36. Volume was more than 30 times open interest in both strikes.

INTU Chart INTU peaked at $39.94 yesterday, its highest price since January 2000 and ended the session with a 0.04 percent gain at $39.57. It had climbed 14 percent since the beginning of the month.

The maker of tax software and has been growing at a double digit-pace by taking customers from companies such as H&R Block and Jackson Hewitt. The two brick-and-mortar companies are down 28 percent and 75 percent this year, respectively, while INTU is up 29 percent.

The company hasn't yet scheduled its next earnings call, but it will likely occur in the second half of August. The last release took place on May 20, when management raised full-year guidance.

Yesterday's option strategy appears to be a modified version of a put spread. Normally the investor would buy and sell equal-sized blocks of puts, but they might have been able to find buyers for all the lower-strike puts.

The trade pushed total options volume in the name to 14 times greater than average. Puts accounted for 96 percent of the activity.

(Chart courtesy of tradeMONSTER)

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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing , Options

Referenced Stocks: HRB , INTU , JTX



More from optionMONSTER:

Related Videos

Don't Pay Up to Play REITs
Don't Pay Up to Play REITs          



Most Active by Volume

  • $17.62 ▲ 0.51%
  • $25.62 ▲ 1.91%
  • $111.78 ▼ 0.77%
  • $36.37 ▼ 1.76%
  • $47.66 ▲ 0.29%
  • $2.59 ▼ 0.38%
  • $7.34 ▲ 2.37%
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by