Market News

March 6, 2013  Wed 3:47 AM CT

Shares of U.S. Airways have been gaining altitude in recent days, and a huge trade is betting that the stock will hold current levels by the end of next week.

optionMONSTER's tracking systems detected the sale of 20,000 March 13 puts in a single print for $0.09 yesterday. The volume was above the strike's open interest of 15,893 contracts before the session began, showing that this is a new position.

These short puts are looking for LCC to stay above $13 through expiration eight sessions from now. If the stock falls below that strike price, the traders will face the obligation to buy shares at that level. (See our Education section)

LCC rose 1.08 percent yesterday to close at $14.05, just below its 50-day moving average. The airline operator's shares hit $15.64 on Jan. 25, its highest price since December 2007.

Yesterday's put sale follows bullish call buying at the March 14 strike a week ago. The company is set to merge with American Airlines later this year, pending approval by antitrust regulators.
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