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December 12, 2012  Wed 4:45 AM CT

ADSK: SEE CHART GET CHAIN FIND STRATEGIES
One investor apparently thinks that Autodesk is ready to stage a comeback.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,500 January 35 calls for $1.08 and the sale of an equal number of January 35 puts for $1.24. Volume exceeded open interest at both strikes, indicating that a new trade was initiated.

The resulting combination trade is very similar to owning shares in the software company, which has been struggling since the spring. If it they rally, the long calls will appreciate and short puts will lose value, while the opposite will happen to the downside. (See our Education section)

ADSK rose 1.94 percent to $34.62 yesterday. The stock has been trading in a range since May, when it crashed on a weak outlook. The next earnings report in August also lagged estimates, but results started improving in November and shares have been climbing since.

Yesterday's bullish trade pushed total option volume in the name to almost 4 times greater than average, according to the Heat Seeker.
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When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

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