Special Airline Pre-Market IV Report May 3, 2020

Special Airline Pre-Market IV Report May 3, 2020

The following report is a snapshot of noteworthy changes in stock and option volumes, as well as changes in option implied volatilities. By monitoring this market data, traders can create strategies that capitalize on this often over looked information.

IV into Berkshire Hathaway Inc (BRKa.N) announcing the sale of its entire stakes in the four largest U.S. airlines

American Airlines (AAL) 30-day option implied volatility is at 135; compared to its 52-week range of 29 to 293 into Berkshire Hathaway Inc (BRKa.N) announcing the sale of its entire stakes in the four largest U.S. airlines, Chairman Warren Buffett said Saturday. As of December, Berkshire owned 42.5M (10% stake). American shares are down 62% in 2020.

Delta Airlines (DAL) 30-day option implied volatility is at 77; compared to its 52-week range of 20 to 264. As of December, Berkshire owned 58.9M (9.2% stake). Delta shares, are down 58% in 2020.

Southwest Airlines (LUV) 30-day option implied volatility is at 67; compared to its 52-week range of 18 to 204. As of December, Berkshire owned 51.3M (10.1% stake). Southwest shares are down 45% in 2020.

United Airlines (UAL) 30-day option implied volatility is at 101; compared to its 52-week range of 20 to 420. As of December, Berkshire owned and 21.9M (7.6% stake) United shares. United shares are down 69% in 2020.

Alaska Airlines (ALK) 30-day option implied volatility is at 91; compared to its 52-week range of 21 to 234.

Allegiant Air (ALGT) 30-day option implied volatility is at 86; compared to its 52-week range of 21 to 216.

Hawaiian Airlines (HA) 30-day option implied volatility is at 110; compared to its 52-week range of 31 to 274.

JetBlue Airways (JBLU) 30-day option implied volatility is at 107; compared to its 52-week range of 23 to 221.

SkyWest Airlines (SKYW) 30-day option implied volatility is at 109; compared to its 52-week range of 21 to 256.

Spirit Airlines (SAVE) 30-day option implied volatility is at 134; compared to its 52-week range of 31 to 370.

Virgin Galactic (SPCE) May weekly call option implied volatility is at 186, May is at 170; compared to its 52-week range of 39 to 247 into Virgin Galactic files to sell 150.5M shares of common stock for holders. Call put ratio 1.7 calls to 1 put into the expected release of quarter results after the bell on May 5.