Bridgepoint Education (BPI) is a big implied volatility mover today after an accrediation body put pressure on the for-profit education to provide additional infromation about its Ashford University. The Higher Learning Commission (HLC) asked Bridgepoint to submit a report after another agency denied accreditation. Ashford University is currently accredited by HLC and the news seems to have stoked concerns that the school might lose accreditation. BPI is off $3.44 to $9.53 and falling to 52-week lows on heavy turnover of 5 million shares, which is almost 10X the typical volume for midday. The stock has now lost $600 million market cap since the news broke Wednesday. Options volume is 10X the daily average today, with 6,900 puts and 5,500 calls traded on the ticker so far. Some investors are bracing for additional volatility and 30-day ATM vols in BPI surged 83 percent to new highs of 128.5.
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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.