In a note out Thursday, Deutsche Bank analyst Paul Ginocchio commented on the potential impact of the changes in the 90/10 rule. The current 90/10 rule limits the percent of for-profit school revenues that come from Federal student aid to 90 percent.
Two changes that the Department of Education is considering are:
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This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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- Include tuition aid and GI Bill fund as Federal student aid
- Move from 90/10 to 85/15 rule, with Federal aid capped at 85 percent
Ginocchio feels that Strayer Education (NASDAQ: STRA) would be most at risk, with Apollo Education (NASDAQ: APOL) or Bridgeport Education (NYSE: BPI) less affected under any guideline changes. He goes on to say he believes the near term risk of any changes is somewhat low.
- Shares of STRA are trading down 0.61 percent at $59.82
- Shares of APOL are higher by 2.2 percent at $26.26
- Shares of BPI are unchanged at $11.20
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.