United Continental drew downside option activity on Friday ahead of its earnings report this week.
More than 3,000 August 20 puts were bought Friday afternoon, mostly for $0.53 and $0.55, according to optionMONSTER's Depth Charge system. Open interest in the strike was just 292 contracts at the start of the session, indicating that these are new positions.
UAL declined 2.27 percent on Friday to close at $21.55, dropping below its 100-day moving average. Shares have fallen sharply since trading above $24 at the beginning of last week as the price of oil has spiked higher.
Our systems did not identify any stock trades tied to Friday's put buying, which could have been a straight bearish bet or protection on a previously established long position. Either way, UAL would need to fall some 10 percent by expiration in a month for the options to turn a profit. (See our Education section)
The parent of United and Continental airlines is expected to report second-quarter financial results on Thursday morning before the bell. Total option volume in UAL was more than twice its daily average for the last month.
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