AAL is fresh off a 52-week peak
American Airlines Group Inc (NASDAQ:AAL) stock is down 1.4% to trade at $17.01 at last check, after the company grounded flights across the nation due to a technical issue. Operations have already resumed, though.
AAL sports a 25.5% year-to-date lead, and is fresh off a Dec. 10, 52-week high of $17.96. The $16 region contained the equity's pullback from that peak, with the ascending 20-day moving average also providing support.
Analysts are already pessimistic, with 12 of the 20 firms in coverage calling it a tepid "hold" or worse. Short interest fell 28.7% over the last two reporting periods, but the 47.43 million shares sold short still make up 7.3% of the security's available float.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), American Airlines stock's 50-day call/put volume ratio of 3.44 sits higher than 99% other readings from the past year. This means options traders have been more bullish than usual, and an unwinding of this optimism could generate tailwinds.
Drilling down to today's options activity, 9,375 calls have crossed the tape, which is double the volume typically seen at this point. The most active contract is the weekly 12/27 16.50-strike put.