DeVry is ripping higher today, and traders apparently think that there's no going back.
optionMONSTER's tracking programs detected the sale of 4,700 March 30 puts, most of which priced for $1. There was zero open interest before the trade appeared, so these are new positions.
Selling puts lets investors collect income from a stock they like without spending any money up front. They're now obligated to buy shares in the education company if they close at or below $30 on expiration. If the stock holds above that level, they'll keep the $1 and the contracts will expire worthless. (See our Education section)
DV is surging 20.44 percent to $31.46 in midday trading after reporting better-than-expected profit and revenue in the second quarter. After falling sharply in 2011 and 2012 along with other education companies, DV has been benefiting recently from growth at its medical schools.
There was also heavy buying in the February 30 puts, but volume was below open interest, suggesting that existing short positions were closed. It isn't clear whether the trades were tied to activity in the March contracts.
Total option volume is 23 times greater than average in the name so far today.
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