Options Trading News

November 30, 2012  Fri 11:02 AM CT

Shares of Spirit Airlines have run into turbulence in recent months, but one trader believes that the stock will hold current levels.

optionMONSTER's real-time systems detected the sale of 2,500 January 15 puts, led by a single print of 2,390 that went for $0.20. The volume was triple the strike's open interest of 924 at the beginning of the day, so this is a new position.

SAVE is down 1.3 percent to $16.67 in midday trading. The regional carrier began the year strong, climbing from about $15 to its 52-week high of $24.75 in three months,

Shares gapped lower in mid-September when Spirit cut guidance and has been range-bound between about $16 and $18 since then. The regional carrier, which mostly operates flights out of south Florida, was forced to cancel flights in October because of Hurricane Sandy along with many other airlines.

Today's put seller is looking for SAVE to be above the $15 strike price at expiration in mid-January. If it is below that level at that time, the trader faces the obligation to buy the stock.

The trade was responsible for almost all of the option volume in the name today, which has seen just 5 calls change hands. Spirit has averaged just 37 contracts a day for the last month.
Share this article with your friends

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »