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 Market Shadows' Virtual Put Selling Portfolio to keep track of this position and see the details of our other put sells.
