Credit: Shutterstock photoIntuit is trading near all-time highs, and one bull is looking for more upside as tax season approaches.
optionMONSTER's Heat Seeker tracking system detected unusual activity in the software maker, whose TurboTax program has been taking market share from brick-and-mortar companies such as H&R Block.
A block of 2,000 February 52.50 calls was bought for $1 against open interest of just 46 contracts. Some 2,100 January 50 calls were sold at about the same time for $0.95 and $1 against existing open interest.
The trade apparently resulted from an investor rolling a long position in the calls to the higher strike. The strategy gave the investor an additional month of long exposure for a small cost.
INTU nhas slipped 0.04 percent to $49.74 in late morning trading but is up 9 percent in the last month. The stock has been the target of bullish call buying recently as sentiment improves in software companies.
It made an all-time high of $50.33 last week and has been drifting lower since. The shares will need to break decisively through that level for today's call roll to make money.
The last time INTU issued results on Nov. 18, its revenue beat forecasts and its loss was inline with consensus.
Overall option volume in the stock is about triple the daily average, with calls outnumbering puts by more than 40 to 1.
(Chart courtesy of tradeMONSTER)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
