Market News

October 14, 2016  Fri 7:47 AM CT

Delta Air Lines rose after reporting earnings yesterday, and traders are riding the carrier for more gains.

optionMONSTER's monitoring program shows that 8,700 Weekly 39.50 calls expiring on Oct. 28 were purchased for $0.55 to $1.22 yesterday. This represents fresh buying, as open interest in the strike was only 197 contracts before the session began.

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 rose 1.88 percent to $40.01 yesterday after announcing mixed quarterly results.

Overall option volume was 3 times greater than average in the name yesterday. Calls outnumbered puts by a narrow margin.

News Archives

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »