ESI - ITT Educational Services Inc.

Discussion in 'Options' started by levitation, Apr 10, 2013.

  1. I can't believe this stock is trading at $13, it could easily be at $100 in 3-4 years from now. You don't have to stretch the numbers that much for it to pull in $8 EPS at 12-13 P/E = ~100. The education sector would have to recover but still, I don't think it’s impossible that once the disdain of for-profit education goes away, this stock will hit $25 or before it gets bought out.

    I'm long shares, but I was looking at the options and everything is expensive. The Jan 2014 20 calls are being bought up with $1.00 premium.

    I'm LT bullish on this company, but the options seem really expensive. Is that a correct statement? What is going on with the options? How do I understand what the bias is?
  2. well I sold shares, I did pretty good on buying in terms of conviction and adding.. Selling I could have done much better, overall made a good return, woulda been better if i traded options..but I was just really confused on what to buy though looking in hindsight any call option woulda worked well lol :D