American Airlines Group Inc (AAL) Option Bears Aim Lower

American Airlines Group Inc is moving little, despite reporting earnings

Digital Content Group
Oct 23, 2014 at 10:31 AM
facebook X logo linkedin


American Airlines Group Inc (NASDAQ:AAL) is up slightly this morning at $37.13, after earlier posting a third-quarter earnings beat. This is likely a disappointment to many traders from yesterday, when puts crossed at nearly double the usual single-session rate.

Digging deeper, short-term contracts were once again popular on Wednesday, per AAL's 30-day at-the-money (ATM) implied volatility, which rose 2.7% to 49.7%. Specifically, the equity's most active option was the weekly 10/24 37-strike put, where roughly 8,900 contracts changed hands. The majority did so at the ask price, and open interest soared overnight, collectively suggesting buy-to-open activity.

By scooping up the ATM puts, these speculators expect America Airlines Group Inc (NASDAQ:AAL) will end the week -- when the contracts expire -- south of $37. Delta on the put is negative 0.46, indicating a 46% chance the option will be in the money at tomorrow's close.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI