UAL Corp. Surprises the Shorts

UAL (UAUA) reported better than expected earnings this week, surprising the large number of short sellers who had taken the short base to a peak of nearly 13% of the shares outstanding. [Read the conference call transcript here.] The volatility of the stock price in recent weeks has been matched by volatility in the short position, reflecting uncertainty about the current outlook for the sector. Most airline stock prices rose on the news, with UAL up 8%.

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