Option Bulls Descend on Hawaiian Holdings, Inc. (HA) as Stock Takes Off

Hawaiian Holdings, Inc. (HA) is flying high as merger madness hits the airline sector

Apr 4, 2016 at 3:15 PM
facebook X logo linkedin

Virgin America Inc's (NASDAQ:VA) newly inked buyout agreement is rippling through the airline sector. Among the stocks being positively impacted is Hawaiian Holdings, Inc. (NASDAQ:HA), as Wall Street speculates the regional operator may be the next airline to field takeover offers. At last check, HA is 3.2% higher at $47.47 and fresh off a record high of $48.91, while its options are in high demand.

Diving right in, HA calls are trading at triple the expected intraday rate. In the lead is the May 45 call, which is seeing buy-to-open activity. In other words, traders foresee the stock continuing to rally north of $45 through back-month expiration, at the close on Friday, May 20.

This represents a change of pace for HA options traders. During the past 20 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.26 puts for every call. Echoing this put-skew is the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.90, which ranks just 7 percentage points from a 52-week high.

Short sellers have been betting against Hawaiian Holdings, Inc. (NASDAQ:HA), too, During the last two reporting periods, short interest on the airline stock zoomed nearly 42% higher, and now accounts for 6.5% of its float. Should the shares fly higher, a capitulation among short sellers and/or option bears could translate into technical tailwinds.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI