Bullish options in play at Impax Laboratories Inc (IPXL)

Apollo Group Inc (NASDAQ:APOL) – Shares in the for-profit provider of educational programs and services declined 11.5% on Wednesday to $18.52 after new enrollment dropped for a third consecutive quarter. The stock, down nearly 70% since this time last year, was cut to ‘equalweight’ from ‘overweight’ at Morgan Stanley and First Analysis Corp. today. Options activity on Apollo Group Inc (NASDAQ:APOL) this morning suggests some traders are positioning for the price of the underlying to potentially slump to the lowest level in more than a decade in the near future. Bearish players appear to have purchased roughly 1,900 puts at the Feb. $15 strike for an average premium of $0.21 apiece during the first 30 minutes of the trading session. Put buyers stand ready to profit at expiration next month should shares in Apollo Group Inc (NASDAQ:APOL) plunge 21% from the current price of $18.71 to breach the average breakeven point at $14.79. Apollo Group Inc (NASDAQ:APOL) eported first-quarter earnings after the closing bell on Tuesday, posting net income and revenue above consensus estimates.

Caitlin Duffy

Equity Options Analyst

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