Grand Canyon Education has fought back to a key level, but
traders apparently don't think that there is much upside left.
optionMONSTER's monitoring systems detected the sale of about 2,600
December 20 calls for $0.35 against open interest of just 49
contracts. The trade pushed total options volume in the for-profit
education stock to 16 times greater than average.
LOPE is down 3.54 percent to $16.37 in afternoon trading. It lost
more than half its value between April 2010 and May 2011 but has
been grinding higher since then. The shares are now back in the
$16-$18 range that offered support last year and resistance this
The last time it tried to challenge $18 was on Aug. 5, when a
strong earnings report caused the stock to gap higher, but sellers
stepped in and quickly drove it back to earth. The next earnings
report is scheduled for the afternoon of Nov. 7.
Shareholders often write calls when they think upside is limited,
letting them earn income to reduce their cost basis. Today's call
selling accounts for all the options activity in the name so far,
with not a single put crossing our screens.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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