A large investor is taking some big profits in Delta Airlines while repositioning for even more gains.
optionMONSTER’s Heat Seeker system shows that a trader sold 15,000 June 30 calls for the bid price of $10.30 against previous open interest of 17,316 this morning. Seconds later, 15,000 January 45 calls were bought for $2.35 in volume that was 10 times the open interest in that strike in what is clearly a new position.
The investor is closing the June long calls , which are now deep in the money , to take profits off the table. But he or she opened a new position in January at a strike that is $15 higher to maintain long-term upside exposure. (See our Education section)
DAL is down 0.45 percent to $40.09 this morning, a day after posting record highs. The airline operator’s shares have doubled since last summer.
Total volume in Delta Airlines tops 41,000 so far today, more than triple its full-session average for the last month. Overall calls outnumber puts by a bullish 10-to-1 ratio.
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