Intuit looks attractive for a quick trade

Intuit shares dropped today by $17 to $246 on relatively benign news of them confirming revenue guidance in line or at the upper end of their forecasted growth rate. Intuit reports earnings on May 23rd, and while the stock has taken a hit it's been on our watch list as a buy and this makes an entry somewhat more attractive. The recent run up in the market is still at risk of fading and we are selling the May weekly (last week) Puts on INTU with a strike price of $205 for $0.70 cents. This trade will give us $70 today per contract, and if the stock drops on earnings below $204.30 we will pick up the shares at the trading price and hold it as a new stock position. If the stock remains above that price, we'll pocket the premium and move in with a nice little gain. Expiration on these options is in 35 days so it's relatively short term.