Options News
$AAL bulls score in one-day trade
Option traders turned fast profits in America Airlines less than 24 hours after opening their positions. Just yesterday, Investitute’s market scanners found that 2,800 Weekly $43.50 calls expiring this afternoon were purchased for $0.21 to $0.48 with shares at $43.56. Open interest in the strike was only 477 contracts before that session began, showing that […]
Option traders turned fast profits in America Airlines less than 24 hours after opening their positions.
Just yesterday, Investitute’s market scanners found that 2,800 Weekly $43.50 calls expiring this afternoon were purchased for $0.21 to $0.48 with shares at $43.56. Open interest in the strike was only 477 contracts before that session began, showing that this was fresh buying.
Those calls sold for $0.61 this morning, about 3 times their initial purchase price. The stock rose 1% at the same time, underscoring how quickly options can far outpace moves in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
AAL was up 1.06% today to close at $44 even. The airline carrier’s shares rose as the price of crude oil pulled back.