Career Education has been languishing after a big drop, and now the bulls are coming back.
The Heat Seeker detected the purchase of about 4,600 December 7 calls for $0.30. Roughly the same number of December 7 puts were sold at the same time for $0.20, resulting in a net cost of about $0.10.
The trade appears to be a " synthetic " long, which simulates owning shares. If CECO rallies, the long calls will make money and the short puts will expire worthless. But if it falls, the investor will lose money on the puts and the calls. (See our Education section)
The education stock is up 1.29 percent to $7.09. CECO cratered to an 11-year early last month after a disastrous earnings report, when stricter regulations hurt results and its CEO stepped down. The stock has nonetheless clung to its trading range and, based on today's action, the bulls apparently expect a rebound.
Overall option volume in the name is 12 times greater than average so far today, according to the Heat Seeker.
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