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August 1, 2013  Thu 3:47 AM CT

ACN: SEE CHART GET CHAIN FIND STRATEGIES
Accenture gapped lower in June, and the bears came back yesterday.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 3,700 September 72.50 puts for $1.45 and the sale of a matching number of September 70 puts for $0.85. Volume was more than 19 times open interest at each strike, indicating that new money was put to work in both.

The strategy cost $0.60 and will earn a maximum profit of 317 percent if the IT consultancy closes at or below $70 on expiration. It's known as a vertical spread because it leverages a move between two prices in the same expiration month, in this case $72.50 and $70. (See our Education section)

ACN was up fractionally at $73.81 yesterday. It touched an all-time high of $84.23 in May but has been trending lower since. Its last earnings report beat expectations, but the shares cratered after management cut full-year guidance.

Total option volume was quadruple the daily average in the name, according to the Depth Charge. Puts outnumbered calls by a bearish 11-to-1 ratio.
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Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

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