Options Radar Targets 2 Airline Stocks

This blog post was written by Chris McKhann.

Delta Air Lines and Continental Airlines saw unusual options activity yesterday, as airline stocks surged across the board.

DAL finished Monday up 2.7 percent to $5.71 but was up as much as 12 percent during the session. CAL closed up 6.8 percent to $11.27, off its own highs of 10 percent for the day. Both had hit multi-month lows Friday before rebounding.

  • Who Owns DAL?
  • Who Owns CAL?

For DAL the interesting options action involved the June 7.5 calls, with more than 5,000 contracts going off in large blocks, according to OptionMonster's tracking systems. For CAL it was the March 10 puts, which also saw more than 5,000 contracts trade, almost all of them bought at the same time for $1.10. Both trades were above open interest.

In early morning trade Tuesday, DAL gained 21 cents, or 3.68%, at $5.92; CAL slipped by 14 cents, or 1.24%, at $11.13.

Other Big Carriers:

AMR (American Airlines)

Southwest Airlines

UAL (United Airlines)


Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.