Bulls ringing bell at Corinthian Colleges

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Corinthian Colleges is attempting to rally after a massive selloff, and the bulls are stepping in.

optionMONSTER's Heat Seeker tracking system detected the purchase of more than 5,000 April 5 calls, with premiums rising from $0.10 to $0.45 as the transactions crossed and the shares pushed higher. The April 6s were also active, trading more than 2,000 times for $0.05.

COCO rose 7.35 percent to $5.11 in late morning trading. The education company lost more than 70 percent of its value between last April and late 2010 as investors worried about tighter student-loan regulations from the government, but shares have been stabilizing since then.

Management said on Feb. 1 it would cut staff and raise tuition fees as it adjusts to the new regulatory environment and lower enrollment.

Overall option volume in the stock is 4 times greater than average so far today, with calls outnumbering puts by 7 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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