Stubborn Put Option Action Continues in Cognizant Technology

(This is an excerpt from an article I originally published on Seeking Alpha on December 12, 2012. Click here to read the entire piece.)

{snip} It is CTSH’s sixth straight positive close on strong buying volume. CTSH has closed up 9 out of the last 10 trading days.


Cognizant Technology now at the edge of a breakout
Cognizant Technology now at the edge of a breakout

Source: FreeStockCharts.com

Despite the strength on display, traders continue to dabble heavily in put options on CTSH. {snip}

As I stated earlier, my bias remains to the upside. With this bias, I am assuming that the heavy put volume is driven by traders looking for premium ahead of the next phase of CTSH’s rally. {snip}
Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on December 12, 2012. Click here to read the entire piece.)

Full disclosure: no positions

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