Bulls flying with Hawaiian Holdings

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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 Dec. 27 , 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.

These long calls 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 Education section)

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.

Disclosure: I own JBLU shares.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: HA

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