Delta Air Lines Stock Surges After Earnings

DAL options pits are busy this morning

Deputy Editor
Apr 13, 2022 at 10:27 AM
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Earnings season is getting underway, and Delta Air Lines Inc (NYSE:DAL) kicked things off this morning after reporting first-quarter financial results ahead of Wall Street's open. The air line concern reported losses of $1.23, which was better than the $1.27 losses that analysts priced in, and revenue that also trumped expectations. The company also revealed that monthly revenue was better than pre-pandemic levels, and predicted a current-quarter profit.

At last glance, Delta Air Lines stock was up 5.4% to trade at $40.72, which puts the shares back above their year-to-date breakeven level. Additionally, should these gains hold, it will mark DAL's first close above the $40 level and 200-day moving average since late February.

Over in the options pits, though calls are outweighing puts on an absolute basis, puts are being picked up a faster-than-usual clip compared to the last 12 months. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DAL's 10-day put/call volume ratio sits higher than 85% of readings from the past year. 

Today, options volume is running at five times DAL's typical intraday average. So far, 66,000 calls and 25,000 puts have crossed the tape. The April 41 call is the most popular by far, followed by the 40 call in the same monthly series. This means plenty of options traders have been betting on more upside by the contract's expiration tomorrow. 


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