A Trader Gets Long Apollo Education Group Inc (APOL) Ahead of Earnings

Apollo Education Group Inc (APOL) is a provider of private education via programs online and on campus. The company’s stock is currently trading around $33.20 in a 52 week range from $16.54-$35.92. The stock has been performing very well this year with shares rising more than 21% year to date. APOL is set to report quarterly earnings on April first and we are seeing some interesting unusual options activity leading into the release. Earlier this morning a trader bought 1,000 of the APOL Apr 4th 34 calls for $1.34. With the options market implying a move of around $3.65 by April 4th expiration it would appear that this trader is getting long the stock expecting a big move higher on earnings. We believe that this order flow is strong enough to signal for a long position in APOL.

Trade: I bought the APOL Apr 4th 34 Calls for $1.46
Risk: $146 per 1 lot
Reward: Unlimited
Breakeven: $35.46