Options Data Suggests Autodesk Stock Could Keep Gaining

Options traders have been targeting puts at an unusual pace, despite impressive gains from ADSK stock

Apr 19, 2017 at 11:05 AM
facebook X logo linkedin


Software stock Autodesk, Inc. (NASDAQ:ADSK) is trading 2.2% higher today at $88.33, but that's nothing new. Shares of ADSK are up 49% year-over-year, and hit a record high of $89.18 on March 1. Since then, the all-important 50-day moving average has served as support. Not only that, but ADSK stock has more upside potential, from a contrarian perspective, given the overwhelming pessimism seen on Wall Street. 

adsk stock news

Starting in the options pits, ADSK stock has a 50-day put/call volume ratio of 1.62 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This put-skewed ratio stands above 99% of the past year's readings, and Schaeffer's Quantitative Analyst Chris Prybal notes that such elevated readings have historically led to outsized returns. 

Interestingly, the most popular put during the past two weeks, based on increases in open interest, was the May 75 strike, and data from the major exchanges confirms sell-to-open activity. This means these put traders are expecting the shares to hold above $75 in the weeks ahead. The May 80 and 82.50 puts were also popular, and buy-to-open activity has been detected at both, suggesting options traders are either betting on -- or hedging against -- a pullback in ADSK stock. 

Elsewhere, short sellers continue to target Autodesk stock, despite its strong technical performance. Short interest increased by more than 12% in the last reporting period alone, and these bears now control nearly a week's worth of buying power, based on average daily volumes. As such, there's still potential for a short-squeeze situation to send ADSK stock higher. 

Not only that, but there's plenty of pessimism to be found in the analyst community, too. While nine analysts rate the shares a "strong buy," eight others give them a "hold" or worse recommendation. Plus, Autodesk, Inc. (NASDAQ:ADSK) is now trading above its average 12-month price target of $87.24. This all means ADSK stock could benefit from a round of price-target hikes and/or upgrades. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI