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Consult with Accenture. We’re adding a new LEAP put position.
Liquidity moves markets!Follow the money. Find the profits!
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 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/