Bulls Bet on More Returns from Intuit
Intuit is expected to keep growing in the consumer segment, and the buyers are following up on last week's bullish activity ahead of its earnings report tomorrow (Thursday).
This time the July 55 calls were the main contracts to light up OptionMonster's real-time tracking systems. More than 2,400 of the options traded, with most of the large institutional-sized blocks pricing for $1.65.
More than 7,000 Intuit contracts crossed our screens overall versus a daily average of fewer than 2,500. Calls accounted for almost three-quarters of the total, so it was a bullish session in general.
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The stock was barely above $50 when the trades appeared but pulled back to end the session down 1.99 percent at $49.78. Citigroup recently initiated the tax-software company as a "buy" with a $59 price target, and some traders see a huge opportunity in the shift away from desktop computers to mobile devices.
The company is scheduled to release quarterly results tomorrow after the bell. In addition to earnings, this tax season could also serve as a catalyst because Intuit's TurboTax software has been stealing market share from brick-and-mortar rivals.
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