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December 4, 2013  Wed 4:14 AM CT

LCC: SEE CHART GET CHAIN FIND STRATEGIES
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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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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