Education Stocks: Bulls Go Back to School

By Mike Yamamoto

The bulls stampeded back to school yesterday, getting long Apollo Group (APOL) and other education stocks.

APOL surged 8.29 percent to $74.74 after a U.S. government report on the industry was less critical than some expected. Options traders snapped up the October 70 calls, with most of the large trades pricing between $4 and $6. Volume in the strike was 5,710 against open interest of 3,847 contracts.

Corinthian Colleges (COCO), up 6.97 percent to $20.10, drew noteworthy buying in the October 17.50 calls and the November 20 calls. Options activity surged 11-fold in DeVry (DV) and six-fold in China-based New Oriental Education & Technology Group (EDU) amid heavy call volume. DV rose 8.11 percent and EDU climbed 3.90 percent.

Career Education (CECO) and Bridgepoint Education (BPI) also rallied amid noteworthy call buying.

ITT Educational Services (ESI) was the only stock in the group to show a potentially bearish sentiment, with unusual buying of the October 100 and November 100 puts. ESI ripped 12 percent higher to $115.61.

Overall options volume in the companies was five times average yesterday, according to optionMONSTER data.