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Long-term bullish trade on Autodesk

Mike Yamamoto (mike.yamamoto@optionmonster.com)

One investor is making a long-term bullish bet on Autodesk.

optionMONSTER's Heat Seeker system detected the purchase of 4,200 January 2015 40 calls in one print for $4.25. This is clearly a new position, as open interest in the strike was a mere 12 contracts before the trade appeared yesterday.

These long calls are betting that ADSK will be above $40 by early 2015. They could be sold earlier at a profit if premiums rise with any rally before then, but the contracts could expire worthless if they remain below that level. (See our Education section)

ADSK was up 0.16 percent to $36.74 yesterday, breaking back above its 200-day moving average. The engineering-software company fell sharply from the $37 level at the end of July but has steadily erased all those losses since then.

The company is scheduled to report second-quarter results after the market closes next Thursday, Aug. 22.

Total option volume in Autodesk was 8,370 contracts yesterday, nearly triple its daily average for the last month. Total calls outnumbered puts by a bullish 10-to-1 ratio.

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