Houghton and Atkeson

What's Cookin' at Career Education (CECO)?

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Option trading activity in Career Education (CECO) is on the top of the "most active" list today as contracts are moving at 22 times their usual volume.

With the stock trading at roughly $20, market participants have exchanged nearly 9,400 of the CECO Jan 17.50 Puts (CUYMW). On the day, 13,000 puts have traded against only 718 calls. Total put open interest is 12,277.

Besides Le Cordon Bleu and the Kitchen Academy Schools, which are part of the Culinary Division, Career Education operates in the graphic design, arts, business and health markets.

On Aug. 6, this educational services company earnings reported Q2 earnings of 12 cents -- the shares fells 5.6%. Clearly, there was someone -- or some people -- who didn't like what they heard. But since then, the stock has bounced back and then some in a difficult tape.

The education sector has proven to be defensive in the past as people go back to school in a challenging economy, but there may be worries that the company's exposure to private loans may be too high. Or are there other concerns that might materialize?.

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