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

Digital Content Group
Oct 15, 2014 at 2:19 PM
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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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