Autodesk Inc. (ADSK)
Update 3/10/2017: ADSK fell sharply for three days after earnings were published and then rose back into the zone of profit, allowing me to exit at my target price, 25% of maximum potential profit.
Shares experienced a net decline of 1.9% over eight days, or a -87% annual rate. The options positon produced a 33.3% yield on debit for a +1,518% annual rate.
ADSK publishes earnings on Thursday after the closing bell.
I shall use the APR series of options, which trades for the last time 50 days hence, on April 21.
Implied volatility stands at 41%, which is 3.5 times the VIX, a measure of the volatility of the S&P 500 index.
ADSK’s IV stands in the 64th percentile of its annual range and the 58th percentile of its most recent broad movement.
The price used for analysis was $87.76.
|Premium:||$8.25||Expire OTM||iron fly|
The premium is 47% of the width of the position’s wings.
The risk/reward ratio is 1.1:1.
Decision for My Account
I have entered a position on ADSK as described above. The stock at the time of entry was priced at $87.80.
By Tim Bovee, Portland, Oregon, March 2, 2017