Delta Air Lines Stock Could Hit 6-Month Highs

DAL has added over 22% so far this quarter

Fernanda Horner

Digital Content Manager

Dec 12, 2022 at 1:15 PM

Delta Air Lines, Inc. (NYSE:DAL) is up 1.8% at $34.38 at last check, as the broader market attempts to rally ahead of this week's pivotal interest rate decision. The equity has added over 22% so far this quarter, but year-to-date it remains down 12.1%. It looks as though the stock might continue chipping away at this deficit, however, with help from a historically bullish trendline.

The trendline in question is DAL's 80-day moving average, which has mostly acted as support since mid-October. According to Schaeffer's Senior Quantitative Analyst Rocky White's most recent study, the security saw five similar signals in the past three years, and was higher one month later 60% of the time, averaging a 10.4% jump. A similar move would place the equity over $37 for the first time since June.

DAL 80 Day

An unwinding of pessimism among short-term options traders could generate additional tailwinds. DAL's Schaeffer's put/call open interest ratio (SOIR) stands higher than 93% of annual readings, suggesting short-term traders have rarely been more put-biased.

Now might be the perfect time for investors to speculate on the stock's next move with options. Delta Air Lines stock's Schaeffer's Volatility Index (SVI) of 42% ranks in the 15th percentile of its annual range, indicating now is an affordable time to buy calls.

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