AAL saw an influx of options activity after its third-quarter report
American Airlines Group Inc (NASDAQ:AAL) climbed for most of October, particularly the couple days after its mixed third-quarter earnings report on Oct. 23. However, the stock quickly ran into pressure at the $14 level, which also capped a rally in early September. At last glance today, AAL was up 1.7% at $13.35, sporting a 22.9% year-to-date deficit.
Options traders targeted the airliner after its report, and it made an appearance on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 stocks that attracted the highest options volume over the past two weeks. In the last 10 days, 825,527 calls and 616,866 puts exchanged hands. The November 14 call was the most popular contract during this time, followed by the March 12 put.
These options are reasonably priced at the moment. AAL's Schaeffer's Volatility Index (SVI) of 50% ranks in the low 18th percentile of its annual range. What's more, the stock tends to outperform these expectations, per its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100.