Accenture is near all-time highs, and investors are heading for the exits.
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 call sellers 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 Education section for more on how options can be used to manage volatility .)
Some 13,500 contracts traded in the session, almost 9 times greater than average.
More From optionMONSTER
- Audiocast: Range-bound trade in BMC
- Personal income, Chicago PMI on tap
- Indexes rise again, pushing VIX lower
- Investment & Company Information