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 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
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
(Chart courtesy of tradeMONSTER)
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