Options Trading News

December 4, 2013  Wed 4:14 AM CT

A large trader is looking for a sharp move in U.S. Airways as shares continue to slide.

optionMONSTER's Heat Seeker system detected the purchase of 16,000 June 30 calls in one print for the ask price of $0.66 yesterday on a wide bid/ask spread. The previous open interest in the strike was just 735, showing clearly that this is a new position.

Seconds before that trade, 272,000 LCC shares were sold for $22.0324. Combined with the calls, this creates a delta-neutral position that is long volatility and/or is aimed at a big move higher or lower. (See our Education section)

LCC lost another 2.82 percent to close out the day at $22.39. The airline carrier was trading above $24 two weeks ago but below $16 in mid-August.

More than 103,000 LCC options changed hands overall yesterday, double its daily average for the last month. 
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