Options Radar: Bank of America, Delta Air Lines, MannKind Corporation

Reviewing notable options activity on Bank of America Corp, Delta Air Lines, Inc., and MannKind Corporation

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Published on Oct 15, 2014 at 2:19 PM
Updated on Apr 20, 2015 at 5:09 PM

Three stocks seeing notable options activity today are financial heavyweight Bank of America Corp (NYSE:BAC), aviation issue Delta Air Lines, Inc. (NYSE:DAL), and pharmaceutical stock MannKind Corporation (NASDAQ:MNKD). Here's a look at how today's options traders have been placing their bets on these three names.

  • Despite reporting a narrower-than-expected third-quarter loss this morning, Bank of America Corp (NYSE:BAC) is down 5% to trade at $15.69. Meanwhile, the security's options pits are busy, with total volume running at twice the usual intraday rate. What's more, short-term contracts are in demand, as BAC's at-the-money (ATM) implied volatility (IV) hit a 52-week high earlier, and was last seen up 24.3% to 37.5%. Digging deeper, speculators are wagering on a short-term rebound for the shares, buying to open BAC's October 16 call, where nearly 49,000 contracts have been exchanged.

  • Delta Air Lines, Inc. (NYSE:DAL) is caving in to the broad-market headwinds, down nearly 4% at $31.50, as persistent fears over Ebola -- which has infected yet another American -- overshadow a price-target hike to $51 from $49 at Barclays. Not surprisingly, DAL puts are trading at twice the expected intraday clip, and the stock's 30-day ATM IV hit an annual high earlier, ahead of tomorrow morning's third-quarter earnings release. In terms of specific strikes, DAL's October 30.50 put is seeing buy-to-open activity, as short-term option bettors eye continued downside through week's end.

  • MannKind Corporation (NASDAQ:MNKD) is bucking the broad-market trend lower, tacking on 8.7% to hover near $5.40. Meanwhile, in options land, calls are crossing at an accelerated rate -- specifically, five times what's expected at this point in the session. What's more, the stock's 30-day ATM IV has jumped 11.4% to 75.9%, signaling elevated demand for short-term strikes. Along those lines, traders are buying to open MNKD's near-the-money November 5.50 call, banking on additional upside over the next month.

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