Options Traders Feed on Software Firm's Woes
This blog post was written by Chris McKhann.
Autodesk is down more than 11 percent Thursday on news of job cuts and lower revenues than expected, and options traders are betting that it will fall even further, with only one day left before January contracts expire.
Traders are buying more than 7,800 of the January 15 puts in ADSK against open interest of 2,702, according to OptionMonster's tracking systems. The contracts ranged in price from $0.15 to $0.40, and now the ask is $0.25.
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The stock is trading down $2 on the day to about $15.75. That's less than half of where the stock was trading as recently as early October but still above its 52-week low of $12.45 from Nov. 21.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.