Traders are calling a bottom in Career Education as the shares attempt to hold long-term lows.
optionMONSTER’s market scanners detected the sale of more than 3,200 September 3 puts in the education stock for $0.40. Volume was more than 24 times previous open interest at the strike.
Writing puts obligates the investor to buy shares at the strike price, while letting him or her collect premium in the meantime. The unusual thing about today’s transaction is that they selected an in-the-money strike, which will cause the position to behave similarly to owning the stock on a move up to $3. See our Education Section for more.
CECO declined 3.61 percent to $2.67 in morning trading, and has lost 23 percent of its value in the last month. It’s been falling since 2010 after the Obama Administration cracked down on student-lending practices, and has recently been downsizing its operations while seeking growth opportunities overseas.
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