Accenture's Stock Performance: A Window into the Company's Strategic Shift

What the Options Market Tells Us About Accenture

By Benzinga Insights Apr 25, 2023

Accenture plc (NYSE: ACN) is a global professional services company that provides strategy, consulting, digital, technology, and operations services. The company's shares have been trending higher in recent times, and the options market is telling us some interesting things about the company's future direction.

According to Benzinga's Options Screener, the 30-day at-the-money volatility for ACN is currently trading at around 24.5%. This is relatively low compared to other stocks in the same sector. A low volatility reading can be a sign of a strong and stable company, as it indicates that the market is not expecting any major surprises or disruptions in the near future.

The options market is also telling us that the majority of traders are bullish on ACN. According to the screener, the most popular options trade on ACN is the call option, with the majority of traders buying calls with strike prices ranging from $300 to $400. This is a sign that traders are expecting the company's shares to continue to trend higher in the near future.

Another interesting thing about the options market on ACN is the lack of put buying. Put options give the buyer the right to sell a stock at a certain price, and a high level of put buying can be a sign of bearish sentiment. However, on ACN, the put buying is extremely low, which suggests that traders are not expecting the company's shares to decline anytime soon.

Finally, the options market is telling us that ACN has a high implied volatility. Implied volatility is a measure of the market's expected volatility of a stock's price, and it is calculated based on the prices of options contracts. A high implied volatility reading can be a sign of a highly volatile market, which can be a sign of increased uncertainty or risk.

Overall, the options market is telling us that ACN is a strong and stable company that is expected to continue to trend higher in the near future. The low volatility reading and the lack of put buying suggest that traders are not expecting any major surprises or disruptions, and the high implied volatility reading suggests that the market is expecting some increased uncertainty or risk in the future.