OptionsHouse

Options Trading News

May 25, 2012  Fri 3:32 AM CT

COCO: SEE CHART GET CHAIN FIND STRATEGIES
The bulls are returning to Corinthian Colleges, which has lost half its value since February.

optionMONSTER's Heat Seeker tracking program detected the purchase of about 5,200 August 3 calls for $0.20 and $0.25, against open interest of jus 289 contracts. Almost all the volume occurred in the final 15 minutes of trading yesterday, suggesting that it was the work of a single large investor.

The trader is now positioned to leverage a rebound in the for-profit college company, which cratered earlier in the month after earnings missed estimates and guidance came in weak. Short interest has also climbed to about 20 percent of the float, which could potentially draw buyers looking for a short squeeze if the stock rallies.

COCO ended the session down 3.03 percent to $2.56, snapping back from even bigger losses as the calls changed hands. There was also heavy buying in the January 2.50 contracts for $0.55, though volume was below open interest in those.

The overall option total in the name was 19 times greater than average, according to the Heat Seeker. Calls outnumbered puts by a bullish 162-to-1 ratio.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »