NEW YORK -- Autodesk (ADSK) has seen upside option activity repeatedly in recent months, and Wednesday the bulls were back.
More than 4,000 April 50 calls traded in a heavy buying pattern as premiums rose from $2.92 to $3.65, according to OptionMonster's tracking systems. The volume was well above the strike's previous open interest of 1,123 contracts, clearly indicating that new positions were initiated.
These calls lock in the price where the stock can be purchased, letting investors benefit from gains at a fraction of the cost. That can generate significant leverage in a rally, but the contracts will quickly lose value if the shares fail to move higher.
Autodesk's stock rose 1.13% to $50.24 Wednesday and is up 46% in the last six months. The design-software maker threw off several winning trades in October and November as the stock pushed to new 52-week highs and is now back to levels last seen in late 2007. A shareholder meeting is scheduled for Jan. 14.
Overall option volume in the name was seven times greater than average Wednesday, with calls accounting for almost 80% of the total.
Yamamoto has no positions in ADSK.