By David Russell, reporter at OptionMonster
The education company's stock had fallen from over $19 in April 2010 to a decade-plus low of $1.24 early last month. The stock popped after management predicted improvement when it reported earnings on Nov. 1, but shares have since drifted lower again and Monday closed at $2.57, down 3.75% on the session.
In late-morning trading Monday, OptionMonster's real-time systems detected a surge of activity in the February 2 calls, with about 3,000 purchased for 85 cents and 90 cents. Volume was more than 14 times open interest in the strike.The contracts are in the money, which means that they will closely track movement in the underlying share price. Unlike out-of-the-money calls, they will keep some of their value as long as Corinthian's shares stay above $2. Short interest ended last month at 28% of the float, which could also help drive upside in the stock. Overall option volume in the stock was 10 times greater than average in the session, with calls outnumbering puts by 19 to 1. Russell has no positions in COCO.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV