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

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »