Mike Khouw's Corinthian Colleges (COCO) Trade

Mike Khouw talked about an option strategy in Corinthian Colleges, Inc. COCO on CNBC's Fast Money. He said that Corinthian Colleges (COCO) is one of the stocks that has a very high implied volatility, and he also noted that it has a very low P/E ratio. Mr. Khouw thinks that it is very hard to trade this stock, because a lot of investors are trading it on the short side. He thinks that probably there will be a big move in this stock, but for a certain period it might be stuck in a range. His strategy includes a sale of the November 7.50 call for $0.35, and he also wants to buy the February 7.50 call for $0.85. This trade would cost him $0.50, and he hopes that COCO would move higher after the November expiration. Corinthian Colleges, Inc. (COCO) fell 1.27% today, and closed at $6.22.