Apollo Education Group (APOL) is a Phoenix, Arizona-based S&P 400 Company which owns and operates for profit educational institutions, including the University of Phoenix, Western International University, Axia College, and the College for Financial Planning.
APOL shares have performed well in 2014, especially compared to the broader market – the stock is up 27%, but off the $35.92 high from January 22. Trading in a range of $16.54-$35.92, the stock is still trading below June 2012 levels when the University of Phoenix came under scrutiny.
EARNINGS
Apollo Education is scheduled to report earnings after the market close Tuesday. Historically, the stock has moved significantly on the earnings catalyst (13.5% on average), having gone up three of the past four quarters, but only four of the past eight. The at-the-money straddle was implying a below average move of 10.3% at the close of Monday’s session.
Since APOL offers weekly options, traders wishing to isolate the earnings catalyst can place a trade using the weekly options. This is best done as close to the market close as possible, as this will avoid unnecessary premium decay (theta).
