Why bears are returning to Accenture

By
A A A

Accenture gapped lower in June, and the bears came back yesterday.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 3,700 September 72.50 puts for $1.45 and the sale of a matching number of September 70 puts for $0.85. Volume was more than 19 times open interest at each strike, indicating that new money was put to work in both.

The strategy cost $0.60 and will earn a maximum profit of 317 percent if the IT consultancy closes at or below $70 on expiration. It's known as a vertical spread because it leverages a move between two prices in the same expiration month, in this case $72.50 and $70. (See our Education section)

ACN was up fractionally at $73.81 yesterday. It touched an all-time high of $84.23 in May but has been trending lower since. Its last earnings report beat expectations, but the shares cratered after management cut full-year guidance.

Total option volume was quadruple the daily average in the name, according to the Depth Charge. Puts outnumbered calls by a bearish 11-to-1 ratio.




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: ACN

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

78%

Most Active by Volume

89,070,840
  • $17.26 ▲ 3.23%
78,931,485
  • $7.02 ▲ 4.46%
77,555,734
  • $6.70 ▲ 6.69%
77,025,346
  • $24.66 ▲ 0.69%
74,713,335
  • $101.80 ▲ 1.82%
72,324,726
  • $7.64 ▲ 0.79%
57,112,188
  • $17.84 ▲ 55.27%
53,321,397
  • $18.01 ▼ 4.46%
As of 12/17/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com