A large investor wants to lock in gains as Corinthian Colleges
fights its way back from the dead.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 7,000 November 2 calls for $0.77 and the sale of an
equal number of November 1 calls for $1.70. Volume was below open
interest in the 1s but not the 2s, which indicates that an existing
was rolled from one contract to the other.
The trader apparently made money in the lower-strike calls and is
adjusting the position to lock in those profits or recoup the
initial investment. He or she collected $0.93 and can still profit
from further gains in the beaten-down education stock if it
continues to rebound. (See our
COCO fell 5.42 percent to $2.62 yesterday. It lost more than half
its value between February and early August but has appreciated 30
percent since then. Like most others in the industry, the company
has struggled for the last two years as government authorities have
cracked down on student loans, once the lion's share of their
Corinthian, which previously traded in the mid-teens, now fetches
less than half of book value. In addition, short interest
represents more than a quarter of its float, which could be leading
investors to anticipate a rebound over time.
Overall option volume in COCO was 86 times greater than its daily
average yesterday, according to the Heat Seeker. Calls outnumbered
puts by more than 500 to 1.
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