Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 17, 2013  Wed 12:20 PM CT

DAL: SEE CHART GET CHAIN FIND STRATEGIES
Delta Air Lines is drawing bullish option activity ahead of its earnings report next week.

More than 6,500 July 20 calls have traded in a strong buying pattern today as premiums have tripled from $0.07 to $0.21, according to optionMONSTER's Heat Seeker tracking program. This is fresh buying, as teh strike's open interest was just 200 contracts before the session began.

These long calls, which lock in the price where traders can buy the stock, are looking for DAL to close above $20 before they expire at the end of this Friday's session. But these contracts will expire worthless if shares remain below that strike price. (See our Education section)

DAL is up 2.9 percent to $19.85 in afternoon trading after hitting $19.93 earlier in the session, its highest price since December 2007. The airline carrier is scheduled to report quarterly results next Wednesday, July 24.

Our systems also detected heavy buying in the September 20 calls today, but the volume was below the open interest at that strike and could therefore be opening or closing positions.

Total option volume in DAL is 17,547 so far today, more than double its full-session average for the last month. Overall calls in the name outnumber puts by nearly 10 to 1.
Share this article with your friends


Related Stories

DAL

Investor bets Delta will keep flying

November 13, 2014

The carrier began today's session as the third-best performing member of the S&P 500 in the last month, and one trader apparently believes that shares will keep rallying.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER