A complex call spread dominated the option activity in Cognizant Technology at the end of last week.
optionMONSTER's Heat Seeker system shows that a trader bought 3,450 October 75 calls for $1.95 and sold 6,900 October 80 calls for the bid price of $0.45. This vertical spread cost $1.05 to open, which is the amount at risk if shares remain below $75 for the next two months. The maximum profit would come with shares up at $80 at expiration in mid-October.
The trade follows another call spread in Cognizant detected by our scanners in the January strike two sessions earlier .
CTSH was up 1.36 percent on Friday to close the week at $73.75. The technology-outsourcing company, which reached a high of $81 in early March, bounced off support at $70 on Wednesday.
Total option volume in the name was 14,850 on Friday, nearly 6 times its daily average for the last month. Overall calls outpaced puts by nearly 4 to 1.
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