Bearish Lincoln Educational Services Corp. option trades surged for a second day as investors boosted wagers that the for-profit college with 43 campuses and 32,000 students will extend losses by February.
More than 1,600 puts to sell the stock changed hands, six times the four-week average and 236 times the number of puts to sell, as of 4 p.m. in New York. The West Orange, New Jersey-baesd company fell 1.4 percent to $15.39 today, extending this year’s 29 percent retreat. Put volume jumped yesterday to a 14-month high of 2,101 contracts.
Today’s most-active contracts were February $15 puts, which accounted for about four-fifths of all volume. They rose 11 percent to $1.05 with 94 percent of those contracts trading on the ask price, which indicates that buyers initiated the transactions. The largest trade was a block of 1,238, which would give the right to sell 123,800 shares.