Career Education plunged last week, and the bears are looking for more losses.
OptionMonster’s real-time tracking system detected the purchase of 3,200 April 7 puts for $0.20 on Friday. Volume was more than five times open interest in the strike.
Put contracts lock in the price where investors can sell shares and can be used to hedge on a long position or to speculate on a share-price drop. They can provide significant leverage to the downside, but these puts will also expire worthless if Career Education’s stock fails to push lower over the next six weeks.