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Joe Kunkle
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History/Trading Style: I have been trading for 12 years, since I was 15, and have studied a variety of trading techniques and strategies. I combine many trading philosophies and combine technical analysis, fundamental analysis, and macro-economic analysis into every trade. I mostly trade options... More
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Options Hawk
My blog:
Options Hawk
  • Airliners Taking Flight, Option Traders See Sky as the Limit 0 comments
    Dec 11, 2009 2:58 PM | about stocks: DAL, UAL, JBLU, SKYW, ALK, LUV, AAL, UAUA

     Airliners are hitting highs today, the XAL up 6% on the day as oil breaks below $70, and option traders are active in a few names today.  

    Delta (NYSE:DAL)
     is trading 35,000 calls, 7X average, including a block 8,000 March $13 calls bought at the 80 cent offer.  A lot of bullish December call positions are being rolled forward to January and March.  

    AMR Corp (AMR)
     is trading 38,000 calls, 3X average, with 70% offer side including block buys of December $8 and January $7.50 calls.  UAL Corp (UAUA), where the bullish action started a few weeks ago, is seeing less action although the January $11 calls are seeing a few blocks bought offer side.  

    Continental (NYSE:CAL)
     is trading 20,000 calls, 4X average, with 65% offer side including large block buyers in January $20 calls with shares at $17.66.  The Airline Index (XAL) officially broke a downtrend in August at $20, but now is really taking flight.  

    The Regional Airliners are seeing less activity today but Alaska Air (NYSE:ALK) has a great breakout on the chart, and SkyWest (NASDAQ:SKYW) may be the best value.  Southwest (NYSE:LUV) is another great value that is trading 3X average call volume with bullish buying in January $11 calls. 

    A lot of money is flowing into this under-invested group that was once forgotten, and the "smart money" is pointing to a continued rally in the airline stocks.

    Disclosure: Disclosure: No Current Position
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