Apollo Group has tried to rally, but one bear expects the
education company's stock to come back to earth.
optionMONSTER's Depth Charge monitoring system detected the
purchase of 4,500 February 45 puts for $1.52 and the sale of an
equal number February 55 calls for $1.36. Volume was more than 4
times open interest in both strikes.
The trader collected a credit of $0.16 and will make money from
APOL dropping in the next two months. He or she would be forced to
sell shares if it rallies above $55, a level that's been resistance
for more than a year.
The position may be the work of an investor looking to hedge a long
position in APOL shares. If that's the case, it would be a
trade. (See our
APOL fell 0.4 percent to $50.04 yesterday but is still up 7 percent
in the last month, contrasting with a 2 percent decline in the
broader market. Apollo's last earnings report on Oct. 19 beat
expectations on the top and bottom line as the company adjusts to a
stricter regulatory environment.
The shares have been attempting to work their way higher for the
last year after a government crackdown on student debt caused the
entire sector to tank in 2010.
Overall option volume in APOL was 4 times greater than average
yesterday, according to the Depth Charge.
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