OptionsHouse

Options Trading News

September 27, 2013  Fri 2:45 AM CT

DAL: SEE CHART GET CHAIN FIND STRATEGIES
A complex call spread topped yesterday's option activity in Delta Airlines as shares climbed to a new high.

optionMONSTER systems show that a trader bought 20,650 January 25 calls for the ask price of $1.52 and sold the same number of the October 25 calls for the bid price of $0.36. Volume was above the previous open interest at each strike, so this is clearly new positioning.

This calendar spread cost the trader $1.16, which is the most that can be lost before that first expiration. The maximum gain would be realized with DAL right at $25 at the October expiration. (See our Education section)

DAL was up 0.84 percent to close at $24.01, a new record closing high. Shares were down at support at $19 a month ago.
Share this article with your friends


Related Stories

DAL

Cramer: Are airlines a value play?

July 7, 2015

If you really want value you have to consider the airlines. Why? Because oil's going down, earnings estimates have come down, and the dollar seems to be holding.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »