New Oriental Education & Technology tried to rally today, but the bears want to smack it down.
optionMONSTER's Depth Charge tracking system detected the purchase of more than 3,200 January 25 puts for $1.70 to $1.90. Volume was more than twice open interest in the strike.
EDU is up 0.97 percent to $24.26 in afternoon trading but at one point was up by more than 4 percent. The Chinese education stock has been trending lower since mid-September, when it peaked above $34.
Based on today's put buying, the trader is looking for shares to push back down to their recent lows. The fact the investor is using in-the-money contracts suggests that he or she is a speculative bear, rather than a shareholder looking to hedge a long position. (See our Education section)
Overall option volume is 9 times greater than average so far today, with puts outnumbering calls by 49 to 1, according to the Depth Charge.
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