Call buyers hope to take off with Delta
Mike Yamamoto | [email protected]
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.