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


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »