Unusual Options Activity in ITT Educational Services, Inc. (ESI) Yields Incredible Profits

ITT Educational Services Inc. (ESI) is a provider of postsecondary degree programs in the United States to approximately 55,000 students. ESI is trading at $4.44 around the lower end of its 52 week range of $1.93-$18.83. Year to date the stock has severely underperformed the market this year, falling 53.69%. The stock ripped higher today by about 84.65% or $2.04 during the trading session.

Early on a trader bought 2,309 of the ESI June 3.0 Calls for $0.45 when the stock was trading at $2.60. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $2.00 to $4.60 after the trade hit the tape. Over 2,700 of these June 3.0 Calls have been traded today hinting at bullish sentiment. The ESI June 3.0 Calls have traded as high as $1.65 today making this a very profitable trade. This stock has been trading below the Ichimoku Cloud for a few weeks now until it ripped to the upside in today’s session and continued to trade above the Ichimoku Cloud.

Trade: A trader bought 2,309 of the ESI June 3.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $4.89

If a trader bought a 20 lot of these puts they would have profited $2,400 at the highs on $900 in risk. This is a great example of profitable UOA.