Consult with Accenture

06/28/2013

Consult with Accenture

By Paul Price

We're selling a new Put position.

Disappointing quarterly results sent shares of Accenture (ACN) tumbling this morning. Just after 10 AM the stock was down more than 13% to $69.74 per share.

Market Shadows used the lower price and increased volatility to sell a January 2015 $70 strike price put for $9.70 per share.

We collected $970 for the contract ($9.70 x 100 shares) which represents our maximum profit if the put option ends up expiring in early 2015.

If Accenture closes below $70 on Jan. 17, 2015, we will be forced to buy 100 shares at a net cost of $70 - $9.70 = $60.30 per share.

The stock could drop by as much as $9.44 per share from the trade's inception price (-13.5%) without causing a loss on this position.

See our full Virtual Put Selling Portfolio to keep track of this position and see the details of other put sells we have previously made.

Jun 28, 2013 12:00:00 AM | Options, Value Investing

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06/28/2013