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Options Action: Corinthian

Monday, 27 Sep 2010 | 5:48 PM ET

With for profit education stocks under fire how should you trade Corinthain , which is down over 50% since the beginning of the year?

Rather than taking a long or short position in stock Mike Khouw of Cantor Fitzgerald suggests the following call spread:

Sell Nov 7.50 call at .35
Buy Feb 7.50 call at 0.85

Learn more about this trade. Watch the video now!

Options Action
Is there any hope in the sector or is it really the next subprime? Mike Khouw, Cantor Fitzgerald, shares some options plays in the sector.




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Trader disclosure: On Sept. 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (IBM), (HES), (JOYG), (XBI), (FTO), (OXY), (ORCL), (PEP), (POT), (RSH), (SU), (RIG), (UPL), (VRTS); Weiss owns (BAC), (MOS), (CSX), (HK), (TXN), (WFR), (QCOM); Weiss is short (SF); Pete Najarian owns (NETL) call spreads; Pete Najarian owns (POT) call spreads; Pete Najarian owns (CNI); Pete Najarian owns (AMZN) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (RAX) call spreads; Pete Najarian owns (LLNW) call spreads; Pete Najarian owns (DD); Pete Najarian owns (NOV); Pete Najarian owns (YHOO); Karabell owns (POT), (RIMM), (AAPL); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

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For Brian Kelly
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Accounts managed by Kanundrum Capital are short (XLF)
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Terranova is chief market strategist of Virtus Investment Partners, LTD.
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For Dennis Gartman
Funds managed by Gartman own Gold

For Richard Volpe
***No Disclosures***

For Doug Freedman
Freedman owns (HPQ)
Freedman owns (QCOM)
Freedman owns (AAPL)

For Mike Khouw
Cantor Fitzgerald makes a market in (COCO)

CNBC.com with wires.

  Price   Change %Change
COCO
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