J.K.K.

Under the Radar Research

May 25th, 2015

Educational & Training Services

Related Companies: $ACC $APOL $BPI $EDU $LOPE
With education names in the headlines, are these other education stocks about to head lower?

Industry Overview
The Educational & Training industry has been in the headlines recently. Unfortunately, the news has not been
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pretty. On April 28 , Corinthian Colleges abruptly announced it will immediately close its remaining 28 campuses,
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a move that would affect roughly 16,000 students. Then, on May 12 , ITT Education Services ($ESI) was charged
with fraud by the Securities and Exchange Commission.

Option Flow
Specific names in this industry have been seeing bearish flow in the options market this year. However, there is
one name below that did see recent call activity (New Oriental Education). It is my belief that since this company is
a Chinese company, this action is geared more toward the current China Bull Market play. Here are the examples:
Bridgepoint Education (BPI):

The August 8 Puts were bought for 0.50 back on 3/11/2015

The November 9 Puts were bought for 1.03 on 4/17/2015

Apollo Education Group (APOL):

The July 13 Puts were bought for 0.23 on 5/20/2015

Grand Canyon Education (LOPE):

The September 40 Puts were bought for 1.75 on 5/19/2015

American Campus Communities (ACC):

The September 35 Puts were bought for 0.50 on 5/22/2015

New Oriental Education (EDU):

The January (2016) 30 Calls were bought between 1.05 1.15 on 5/22/2015

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Charts
BridgePoint Education

Apollo Education Group

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Grand Canyon Education

American Campus Communities

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New Oriental Education

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