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Unusual Activity: Airlines

Thursday, 3 Jun 2010 | 5:31 PM ET

We know it’s cliché, but we have to say the airlines stocks have been high fliers lately. And now Pete Najarian has spotted some very unusual activity which suggests they may go even higher.

The Pit Boss has noted a spike in options volume in two names, US Airways and UAL .

Take a look:

Airline Options Volume

6/02 5/26 Avg.
US Airways (LCC) 95K 59K 8K
UAL Corp (UAUA) 42K 26K 13K

What should you make of it?

I’m noticing a lot more call buying than put buying and I take it to mean options investors are expecting these stocks to go even higher in June and July, Najarian says.

If you’re looking for a downstream trade I’d look at Precision Castparts and Rockwell Collins, adds Guy Adami.

Ear to the Wall
Do hedgies know what they're getting into with a Citi buy?

Editor's Note: Pete Najarian's comments about airlines stocks begins at 2:50 of this video.


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Trader disclosure: On June 3, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Kelly Owns (STD) Calls; Kelly Owns (IBM) Calls; Kelly Owns (NBG) Calls; Najarian Owns (C) Calls; Najarian Owns (HK) Call Spread; Najarian Owns (JEC) Call Spread; Najarian Owns (LCC) Calls Spread; Najarian Owns (NOVL) Calls; Najarian Owns (SD) Call Spread; Terranova Owns (RIG), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (IPSU), (SWN), (AAPL), (APA), (UPL), (CVS), (IPI), (TEVA), (FXB), (GLD)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)
Virtus Investment Partners Owns More Than 1% Of (ALK)
Virtus Investment Partners Owns More Than 1% Of (XLK)

For Brian Kelly
Kanundrum Capital Owns (APA)
Kanundrum Capital Owns (IBN)
Kanundrum Capital Owns (FCX)
Kanundrum Capital Owns (FXE)
Kanundrum Capital Owns (JOYG)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (STD)
Kanundrum Capital Owns (NBG)
Kanundrum Capital Owns (IBM)

For Brian Stutland
Stutland Equities Is A Market Maker In VIX And SPX Futures And Options
Stutland Equities Is A Market Maker In VXX Options
Stutland Is Long U.S. Treasuries

For Paul Sankey
(XOM), (CVX), (MUR), (HES), (MRO), (VLO) Is An Investment Banking Client Of Deutsche Bank Securities
Deutsche Bank And/Or Affiliate(s) Has Received Non-Investment Banking Compensation From (XOM), (CVX), (MUR), (HES), (MRO), (VLO) In Past Year
(XOM), (CVX), (HES), (MRO), (VLO) Has Been A Client Of Deutsche Bank Securities In Past Year (Non-Investment Banking Securities-Related Services)
Deutsche Bank And/Or Affiliates Owns 1% Or More Of (MUR), (HES), (MRO), (VLO)

For Deborah Weinswig
An Employee Of Citigroup Global Markets Is A Trustee Of (TGT)
An Employee Of Citigorup Owns (WMT)
An Employee Of Citigroup Owns (JCP)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (SKS)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed Offering Of (DG), (KR), (WMT) In Past 12 Months
Citigroup Global Markets Or Affiliates Has Received Investment Banking
Compensation For Services Provided In Past 12 Months From (DG), (KR),(SKS), (SVU), (TGT), (WMT)
Citigroup Global Markets Expects To Receive/Seek Investment Banking Compensation From (WMT) In Next 3 Months
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) In Past 12 Months
(DG), (KR), (SKS), (SVU), (TGT), (WMT) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SKS), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment-Banking, Non-Securities-Related Services)
Citigroup Global Markets Or Affiliate Received Compensation From (DG) In Past 12 Months
Citigroup Global Markets Is A Market Maker In (CVS), (M), (COST)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (HD), (JCP), (KR), (LOW), (M), (JWN), (SWY), (SVU), (TGT), (WMT), (COST)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (SKS)

For Charles Biderman
Biderman Is Short (CRM)
Biderman Is Short (AAPL)
Biderman Owns Gold
Biderman Owns TIPS


CNBC.com with wires

  Price   Change %Change
COL
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USG1
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CPMCF
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UAL
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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