The 80-day moving average has boosted the shares several time before
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.
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.