Options Bears Target Airline Stock After Acquisition

Deutsche Bank downgraded ALK to "neutral" after the buyout news

Deputy Editor
Dec 4, 2023 at 2:40 PM
facebook X logo linkedin

Alaska Air Group Inc (NYSE:ALK) is in a tailspin today, after the company announced the acquisition of Hawaiian Airlines parent Hawaiian Holdings (HA) for $1.9 billion, including $900 million in debt. The shares of ALK are suffering in response, down 14.7% at $33.89 at last glance, while HA soars 185%. 

Following the news, Deutsche Bank downgraded Alaska Air Group stock to "hold" from "buy," with a price-target cut to $44 from $55. This marks the stock's second downgrade in the last month, with potential for more, as nine of the 13 analysts in coverage still carry a "buy" or better rating. 

This negative price action is poised to be the shares' worst single-session drop since March 2020. ALK has now breached all daily moving averages between the 20- and 320-day trendlines, including the 40-day moving average. Now down 21.4% in 2023, the equity is drifting near its Nov. 1 three-year low of $32.

Options traders are flooding ALK's options pits in response, with 18,000 calls and 22,000 puts exchanged so far, which is already 17.9 times the average daily options volume. The January 2024 27.50-strike put is the most popular contract by far, with new positions being sold to open there. 

ALK Dec4


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