By David Russell
Traders are snapping up calls in AMR (AMR), UAL (UAUA), and US Airways (LCC) today as the airlines continue to receive bullish options activity.
Call volume in the sector exceeded puts by more than 4 to 1 so far today, according to optionMONSTER's Heat Seeker tracking program. Most of the calls were purchased while most of the puts were sold, which also reflects the positive sentiment.
AMR's January 7.50 calls were the most active strike, with institutional-sized purchases pricing for $0.70 to $0.95. LCC's January 5 calls were purchased for $0.35 to $0.50, while UAUA's June 14 calls and January 12.50 calls were also heavily bought. Volume in most contracts were below open interest.
The trade follows a shift of sentiment in favor of the stocks this month as investors focus on the recovering economy and lower fuel prices.
AMR rose 5.67% to $8.07, US Airways soared 10% to $5.07 and UAUA rose 9.03% to $12.56. They're all up 48-79% in the past month.
(Chart courtesy of tradeMONSTER)
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