OptionsHouse

Options Trading News

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.
Share this article with your friends


Related Stories

ADSK

Traders see AutoDesk slide ending

February 2, 2015

The design-software maker is down more than 13 percent since its last earnings report in mid-November and last week fell under its 200-day moving average for the first time since the lows of October.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »