Market News

December 6, 2016  Tue 7:47 AM CT

A trader is positioning for more potential declines in Autodesk.

OptionMonster's monitoring program shows that 2,500 December 70 puts were sold for $1.38 while 2,500 December 67.50 puts were purchased for $0.68 yesterday. Volume was below open interest in the higher contracts, indicating that a bearish position was rolled to a lower strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

ADSK rose 0.86 percent to $71.18 yesterday but is down 7 percent in the last week. The architecture and engineering software company reported mixed quarterly results on Nov. 29 and is expected to release its next earnings numbers after the close on Feb. 23.

Overall option volume was about average in ADSK yesterday, but puts outnumbered calls by a bearish 5-to-1 ratio.

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