Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 8, 2013  Tue 2:45 AM CT

COCO: SEE CHART GET CHAIN FIND STRATEGIES
A bearish position is targeting Corinthian Colleges as it tries to break out of a six-month range.

optionMONSTER's Depth Charge system detected the purchase of 5,050 August 3 in large blocks for $0.75. There was no open interest in the strike at the start of the session, so this is all new positioning.

COCO fell 6.43 percent yesterday to close at $2.62 after rising above its 200-day moving average on Friday for the first time since early July. The for-profit education company has been trading in a tight range for the last six months, mostly between about $2 and $2.90.

Yesterday's puts were not tied to any stock trading identified by our systems during the session, though they could be hedging long positions established earlier. The traders could also be making a straight bearish bet that the stock will fall below $2.25 by expiration in mid-August. (See our Education section)

The put buying made up the bulk of the 6,068 total option volume in COCO, which has averaged just 150 contracts a day in the last month. Only 310 calls changed hands all day, a reflection of the bearish sentiment.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER