Consult with Accenture – Paul Price – Market Shadows

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The opinions expressed are those of Market Shadows and the author, not those of the Wall Street Examiner. The Wall Street Examiner makes no representation regarding the accuracy or validity of the ideas expressed in the post. No recommendation or endorsement is intended or implied. This post is presented for informational purposes as representative of one of a range of views on the subject.  Do all necessary due diligence before considering any investment.

Consult with Accenture. We’re adding a new LEAP 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.

                         ACN  - logo

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

 ACN   Jan. 2015 put

We collected $970 for the contract ($9.70 x 100 shares) which represents our maximum profit if the 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 inception price (-13.5%) without causing a loss on this trade.

See our full Virtual Put Selling Portfolio here http://marketshadows.com/virtual-portfolios/put-selling-virtual-portfolio/ 

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This is a syndicated repost courtesy of MarketShadows. To view original, click here.

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