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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