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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. � � � � � � � � � � � � � 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/�