Airline stocks got a bit of a boost Monday after oil plunged more than 7 percent to its lowest level since April. And one trader who relies heavily on the charts and options market, is placing big bets that the space could surge in the near future.
"When I look at a chart of crude oil, it looks like it's heading toward $42 and that's very good for the airlines," technical analyst and options expert Andrew Keene said Monday on CNBC's "Trading Nation."
According to Keene, there are three reasons why American Airlines could be the most attractive of the bunch. "American has the cheapest P/E in the group, we've seen unusual options activity in the stock and the chart looks like it is consolidating," said Keene, founder of Keene on the Market.