Bullish options continue to build in Hawaiian Holdings.
The operator of regional carrier Hawaiian Airlines first appeared
on optionMONSTER's Heat Seeker monitoring program back on
, when traders snapped up the April 9 calls for $0.90. Those same
contracts have more than quadrupled to $4.70, and the upside
activity has continued since.
This morning traders bought roughly 9,000 March 14 calls, mostly
paying $0.40. Open interest was only 20 contracts before the
session began, so new money was clearly put to work.
lock in the price where a stock can be purchased, letting investors
cheaply position for a rally. They can also generate massive
leverage if shares move in the right direction, which is exactly
what happened with those April 9s. (See our
HA is up 7.24 percent to $14.01 in afternoon trading after hitting
an all-time high of $14.28 and has risen 44 percent in the last
month. The company has benefited from strong earnings and a shift
back toward transportation stocks in recent sessions. Delta Air
Lines, United Continental, and JetBlue Airways have also seen
bullish paper in the last month.
Total option volume in HA is 7 times greater than average so far in
the session, according to the Heat Seeker. Overall calls outnumber
puts by a highly bullish 34-to-1 ratio.
I own JBLU shares.
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