NASDAQ: Will ITT Education squeeze higher?

Career College Central Summary:

  • Traders are positioning for a short squeeze in ITT Educational Services. 
  • optionMONSTER's Heat Seeker system detected the purchase of about 2,100 April 13 calls for $1.44 on Friday. Volume was more than 40 times the previous open interest in the strike, which indicates that this is fresh buying. 
  • These long calls give traders the right to buy ESI for $13 by April 17 no matter how high it might go during that time. Investors use the options to make sure a stock doesn't run away from them, and their cheap cost can result in significant leverage. 
  • The April contracts, for instance, will more than quadruple in value if the shares double. That would translate into profits of more than 1,000 percent. (See our Education section). 

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