Oil prices have been rising in the past two days but airline stocks are doing something surprising—they're rallying, too. And one trader is making a longshot bet that a major airline will see enormous gains in the next month.
Airlines stocks have benefited from the collapse in crude. In the last six months alone, the price of oil has fallen 32 percent while the NYSE ARCA Airline index is up 32 percent. But over the last few days, oil has bounced back in a big way yet airlines haven't sold off.
In fact, shares in airline stocks saw a little bit of a rally on Wednesday after Delta Air Lines reported earnings that beat Wall Street's expectations. Traders began making bullish bets on Delta's competitors as well, including United Continental Holdings, which saw four times its average daily call volume on Wednesday.
Among the calls bought in United, one trade stood out for being incredibly optimistic. A buyer went into the market and bought 10,000 of the May 95-strike calls for 5 cents each. Since each contract controls 100 shares, the trader paid $50,000 with the hope that United will move 56 percent higher from Wednesday's close in the next month.