Cognizant Tech (CTSH) is up 45 cents to $59.84 and options volume on the Teaneck, NJ software company is running 2X the daily average, being driven by a three-way spread. Looks like the one investor sold 1,700 Aug 65 calls on CTSH to buy 1700 Aug 52.5 – 57.5 put spreads, paying 47 cents for the package and opening a new position. The spread might have been initiated to hedge earnings risk. The company is due to report late-July or early-August. Shares fell 19.2 percent on May 7 when profits were last reported.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.