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• Bullish activity still growing in Calpine
• Are PHH shares headed lower?

• EDU 100% Rate It

One big investor is looking for a rebound in New Oriental Education & Technology after the Chinese stock cratered last month.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,000 April 17 calls for $1.70 and the sale of an equal number of April 22 calls for $0.55. There was no open interest in either contract before the trade occurred.

Known as a bullish call spread, the strategy is designed to leverage a move in the share price. It cost $1.15 to open and will earn a maximum profit of 348 percent if the stock closes at or above $22 on expiration next spring.

EDU rose 0.86 percent to $14.05 yesterday, and has lost more than half its value since mid-June. Most of that drop occurred on July 17 after the education company disclosed that it was under investigation by the U.S. Securities & Exchange Commission. That negative headline eclipsed a strong earnings report the same day.

The stock had traded for $22 immediately before the news surfaced, so Monday's call spread was looking for a rebound to that level. See our Education Section for more on how options can be used to generate leverage.

More than 13,000 contracts traded in yesterday's session, almost quadruple the average volume. Calls outnumbered puts by more than 5 to 1.

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