Options traders increased hedging activity into Intuit’s earnings release, with put volumes outpacing calls by a significant margin. A total of 23,000 contracts changed hands, including 12,985 puts compared with 10,015 calls, as investors positioned for potential downside risk.
The most active strategy centered on put spreads expiring three days after the earnings announcement. The $325/$310 put spread attracted 5,402 contracts, while the $325 put held 2,154 contracts in open interest and the $310 put had 162. On the call side, the $350/$345 call spread recorded 700 contracts.
Shares of Intuit fell 2.8% to $359.55, extending a volatile stretch that has seen the stock decline 43.1% over the past 12 months despite a 19% gain in the last month. Implied volatility for the three-month horizon eased by 1.7 points to 52.14%, though the 90/110 skew rose to 1.90 percentage points, up 1.61 points, indicating elevated demand for downside protection relative to upside calls.
Analysts maintain a Strong Buy rating on Intuit with a price target of $444.50.
