Shares of Bridgepoint Education Inc. (BPI) are trading down .22 to 9.99 today.? BPI is trading closer to 52-week lows.
Today the BPI 10/12.5 risk reversal traded where paper sold the May 10 puts for 1.0 and bought the May 12.5 calls for .40 for a total of 2,500 contracts.? The average contract volume is 723 contracts per day in the name.? Open interest is over the volume of the trade on both strikes.? The implied volatility is down in May.
The trade looks like closing and reopening in the Aug 10/12.5 where the customer bought put and sold calls to create a collar 2,500 times.? The trade went up as buy-write and both could be linked.
30-day implied volatility is 69%.? 10-day implied volatility is 26%.? 30-day implied volatility is trading above the 10-day historical volatility.
Bridgepoint Education, Inc. (BPI) is a provider of postsecondary education services.