Traders were buying calls in Apollo Group as the education company's stock climbed off multi-year lows Friday.
The stock was down 2 percent on Friday, finishing the week at $46.13. Shares are up 10 percent from a multi-year low set July 1 but down from above $51 last week. They have been trending lower since trading above $65 in April and $76 last October.
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The average option volume is 7,000 contracts, but one block of 10,124 contracts changed hands Friday in the January 75 calls for $0.46. This volume was against open interest of 1,798 contracts, so it was a new opening position.
This trader is apparently betting that Apollo's stock will be flying high once again and will get back above the highs from the end of last year.
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Apollo Group Competes With:
Career Education
DeVry
ITT Educational Services
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Chris McKhann is an analyst and writer for OptionMonster.
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