Why Are Traders Bullish on This Education Firm?
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.
Apollo Group Competes With:
ITT Educational Services
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Chris McKhann is an analyst and writer for OptionMonster.