Market News

November 22, 2016  Tue 12:01 PM CT

Traders are snapping up calls in Delta Air Lines for the second session in a row.

OptionMonster's tracking program detected the purchase of more than 13,000 December 49.50 calls for $1.21 to $1.30 today. Volume dwarfed the strike's open interest of 40 contracts, showing that this is fresh buying, and follows a large bullish call roll on Monday.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

DAL is up 1.09 percent to $49.14 in afternoon trading and is up 32 percent in the last three months. The airline carrier reported bullish quarterly results on Oct. 4 was bullish and is expected to release its next earnings numbers in pre-market hours on Jan. 19.

Overall option volume is about average in DAL so far today, but calls outnumbered puts by a bullish 3-to-1 ratio.

News Archives


The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »