The rally in airline stocks lost steam Tuesday after the crude crush reversed course. Despite the dip, United Continental, Delta and JetBlue are up a respective 3, 5.6 and 3 percent in the last week, and one trader thinks the good times could continue for one of these names in particular.
On Monday, when Delta shares rallied more than 4 percent, one trader bet $3.5 million that the stock could soar to a new high by the end of next week. Specifically, that trader bought 45,000 December 52.50-calls for 77 cents each. Since each options contract accounts for 100 shares of stock, this is a nearly $3.5 million bet that Delta will be above $53.27 by next Friday. That's a 5 percent rally from the stock's current price of around $50.60 and puts shares at an all-time high.