US Airways (LCC) is up $1 to $7.41 on share volume of 11.2 million and gaining altitude today following upbeat earnings news. Typical volume in LCC through the first 90 minutes of trading is about 2 million. Options on the airliner are actively traded as well, with 14,000 calls and 2,900 puts traded in the name so far. The top trades are a Mar 7 – 8 call spread, apparently sold at 45 cents, 4000X. The spread might roll a position from in-the-money to out-of-the-money calls after today’s rally. While the activity in Mar 8 calls looks opening, Mar 7 calls have 21,270 in open interest — which is the largest position in LCC options today.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.