The bulls want to keep flying with airline operator Hawaiian
, optionMONSTER's Heat Seeker monitoring system detected the
purchase of about 5,000 April 9 calls for $0.90 as investors looked
for upside in the share price. They guessed right, because HA has
been climbing since the paper hit and those contracts have inflated
The name is active again today. This time a trader is unloading the
original 5,000 April 9s and buying 7,000 of the February 10 calls,
most of which priced for $0.70.
Making the adjustment let him or her recover $260,000 of their
capital at risk. It also increased the
to 420,000 from 390,000, meaning that the investor stands to profit
even more from a rally with the new
. In return for the cash back and the increased leverage, the
trader surrendered two months of exposure. (See our
section for more on managing positions with options.)
HA is up 1.68 percent to $10.30 in afternoon trading and has almost
doubled since last spring. Shares of the company, which the parent
of Hawaiian Airlines, are now pausing below their previous all-time
highs from 2008. Last year's calendar suggests the next earnings
report will occur late this month, so today's trader could be
expecting a breakout when the quarterly numbers are released.
Total option volume is 10 times greater than average in the name so
far today, according to the Heat Seeker. Calls outnumber puts by
more than 300 to 1.
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