Apollo Group (APOL) is off 78 cents to $31.17 and falling to 52-week lows in active trading of 1.7 million shares and puts on the for-profit education are seeing increasing volume on unconfirmed talk David Einhorn is short the stock — according to the flyonthewall web site — LINK. The sector is also seeing relative weakness today after New Oriental Educational & Technology (EDU), a Chinese foreign language training company, disclosed an SEC investigation into the company after reporting earnings. EDMC, COCO, DV, CECO all trading lower on the session and options order flow in Apollo includes 13,000 puts and 1,200 calls, a ratio of more than ten-to-one. July 30 and 31 puts are the most actives, as players brace for further losses in the days ahead. July options expire at the end of this week. July 29, Jul 32, and Aug 25 puts are also seeing interest and 30-day ATM vols in APOL options moved up 18 percent to 45.5.
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.