Options Close Alert: Autodesk (ADSK)

By Jim Pearce • May 29, 2018

TRADE INSTRUCTIONS

Date: May 29, 2018
Name: Autodesk
Symbol (Exchange): ADSK (NasdaqGS)
Type: Sell put option to close
Expiration: June 1, 2018
Strike Price: 137.00
Symbol: ADSK180601P00137000

TRADE RATIONALE

We got the result I was expecting last week when Autodesk released its quarterly results and restated forward earnings guidance downward. The stock dropped immediately on Friday and is down more today, so we now have a very nice profit of more than 40% in only a week and I’m taking it!

If you choose to leave this position upon through expiration this Friday, be aware that there is support for the stock at $123 so I’d be surprised if it drops any further than that this week.

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Freddie

05/29/18 ‐ 1:31pm ET May 29, 2018 at 1:31pm ET

Do you think it will pop up above 135 by friday. I did a 137/135 put debit spread

Jim Pearce

05/29/18 ‐ 1:32pm ET May 29, 2018 at 1:32pm ET

I’d be shocked if that happened since I can’t think of any news (other than an unexpected takeover announcement) that could reverse last week’s bad news so quickly.

Freddie

05/29/18 ‐ 8:02pm ET May 29, 2018 at 8:02pm ET

Alright- i think i’ll wait it out till the end of the week. Thanks

Jeff L.

05/30/18 ‐ 9:29am ET May 30, 2018 at 9:29am ET

Hi Jim,
I just became a member to the wealth society and also have access to options for income. I started the call spread for ADSK with Options for income should I wait on the alert from that account or are the alerts all the same?

Jim Pearce

05/30/18 ‐ 1:05pm ET May 30, 2018 at 1:05pm ET

Hi Jeff. Your question raises a good point; options recommendations made for one service do not apply to open trades for the same security in another service. Jim Fink uses his own methodology for generating trade recommendations for OFI (and VT) that is entirely different from what I use for RWA (and that Linda uses for PCA). It doesn’t happen often, but when it does then each trade should be followed independently of one another. Thank you.

Daniel Long

05/30/18 ‐ 10:23am ET May 30, 2018 at 10:23am ET

ADSK Jun 1 137 P sold @6.65 this AM (5/30). BTO was 4.94 on 5/23/18.
33.7% profit in one week.
Thank you.
DL

Rick

05/30/18 ‐ 11:38am ET May 30, 2018 at 11:38am ET

Great call Jim, I bailed on Friday so I did not get 40%, but close to 20% in 2 days. So I am plenty happy about the trade.

Benny K

05/30/18 ‐ 3:50pm ET May 30, 2018 at 3:50pm ET

Nice trade Jim. In @ 4.95 out at 6.90 for 38% gain. I could do that all day long.

Freddie

06/01/18 ‐ 4:07pm ET June 1, 2018 at 4:07pm ET

Jim
Thanks for the trade- ill get assigned/exercised my 135/137 put debit spread over the weekend. Net debit 1.00- coming out to a 100% return before commisions!!

Jim Pearce

06/04/18 ‐ 9:07am ET June 4, 2018 at 9:07am ET

Smart trade, Freddie. Glad to hear it!

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