Accenture Triple Calendar

There are two key factors for Accenture and this trade:

1. Earnings on 10/2 will probably move the stock significantly. If you look at the previous two earnings reports, the stock has jumped up or down around 10%. In anticipation of this, implied volatility for the stock is on the move. There has been a lot of call activity recently, signaling that speculators are anticipating the earnings to be good.


2. On the charts, the $33 (orange oval) area is showing a lot of support. We also have a teacup shape in the green rectangle and that has set up a lot of resistance around the $37 level. I anticipate the stock to move between $40 (the year long high) and $33, no matter what the earnings report is.

The Trade:
Although the trade hasn't been executed, I anticipate it will get filled tomorrow morning fairly close to the prices below. The details of what I will buy/sell are listed below in the risk profile picture.


As you can see, if by Oct 16th, the price is anywhere between $29-42, I am in the money and will walk away with a profit. My max profit is $261 on an intial outlay of $285 (which is alos my max loss).

Also, based on the historical standard deviations, my odds of profit are somewhere in the vicinity of 89%.

A trade that has potential of 92% profit in a mere 2 weeks and an 89% probability of profit - I will take that everyday. I will update at what prices did I get filled at and what my final risk profile looks like.