ITT Educational Services has been parked at long-term lows, but now the bears are getting nervous.
OptionMonster's tracking programs detected the purchase of about 2,500 May 15 calls for $0.45 and $0.50 yesterday morning. The volume was well above the strike's open interest of just 343 contracts before the session began, definitely showing that new money was being put to work.
Those calls lock in the price where investors can buy shares in the massively shorted for-profit education stock, which can provide some nice leverage in the event of a rally. And that's what happened almost immediately yesterday.