Strayer Education has fallen to its lowest prices in more than a decade, but one trader is betting that the stock will hold current levels.
optionMONSTER's tracking systems detected the sale of 1,672 September 40 puts for $1.35 to $1.10 yesterday. The volume was well above the strike's open interest of just 49 contracts before the session began, showing that these are new positions.
The put sellers are looking for STRA to stay above $40 through expiration in less than a month. But the traders will face the obligation to buy shares if they fall below that strike price before mid-September. (See our Education section)
STRA rose 2.15 percent to $41.74 yesterday after posting an intraday low at $40.03 on Friday, its lowest price since April 2001. The adult-education company fell sharply on July 25 after reporting second-quarter results.
Total option volume in the name yesterday was 13 times its daily average for the last month.
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