Players are bracing for volatility in Apollo Group (APOL) ahead of earnings. The top trade is a buyer of 900 Jul 44 calls at $2.04 and tied to shares at $43.80.on a 50 delta. The next biggest trade is a Jul 35 – 39 put spread, apparently bought at 50 cents, 622X on ISE. Beyond that, most of the action has been in smaller lots. 5,760 calls and 9,180 puts traded on the for-profit education company so far. The most actives are all front-month July options: 44 calls, 43 calls, 35 puts, 43 puts, 39 puts, 42 puts, and 38 puts. Implied volatility is moving up 10 percent to 53 ahead of the results, due after the closing bell. Shares lost 4.3 percent on 3/29 when earnings were last reported.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.