SolidNetwork LM cannot find sw_d.opt file

I want to set a simple TIMEOUT feature, but I can't get it to work.  I'm using a sw_d.opt file, SolidWorks 2010, FlexNet Licensing Acresso v11.6.1.0

I have the .opt file in the same folder as the lic file (sw_d.lic), and my lic file reads:

SERVER atserver ANY 25734
VENDOR SW_D sw_d.opt
USE_SERVER

my options file (sw_d.opt) contains one line:

TIMEOUT solidworks 900

When I restart the license daemon, I get the message "license server manager (lmgrd) startup failed: File not found, sw_d.opt. I had the timeout set up and working with SW 2009; I'm pulling my hair out here...

SolidworksAdministration