Airline stocks are getting a boost from Delta earnings and plummeting oil prices
American Airlines Group Inc (NASDAQ:AAL) stock is up 9.3% to trade at $11.82 today, on track for its best single-session gain since Aug. 12. The airliner is enjoying a halo lift from Delta Air Lines' (DAL) stellar first-quarter earnings report. An additional boost is coming from deflated oil prices, in response to the two-week ceasefire between the U.S. and Iran.
Today's breakout has AAL clearing a tight range for the last month, testing the overhead $12 ceiling. The stock is down 22% in 2026, but up 31% in the last 12 months.
A short squeeze could keep the wind at the equity's back. Short interest increased by 25.4% in the two most recent reporting periods, and the 56.41 million shares sold short account for 8.7% of the stock's total available float.
Calls are flying off the shelves today. At last check, 72,000 calls have changed hands, volume that's five times the average intraday amount and more than double the number of puts traded. The weekly 4/10 11-strike call is the most popular, while new positions are being bought to open at the weekly 4/10 11.50-strike put.
It's also worth nothing that the stock's Schaeffer's Volatility Scorecard (SVS) ranks at a 70 out of 100, indicating it has tended to exceed option traders' volatility expectations during the past year.