Traders targeted United Continental early yesterday and remained bullish throughout the session.
UAL fell 0.96 percent to close at $33.18, but upside options held their value.
The October 38 calls saw some big chunks trade shortly after the open for $0.22, and volume continued higher to almost 5,600 by the closing bell, according to optionMONSTER's tracking systems. Previous open interest in the strike was 3,739, indicating that new positions were established.
These long calls lock in the price where the stock can be purchased, letting investors cheaply position for a rally while limiting losses if it tanks. They're on the taxiway and can now rip higher if the stock surges. (See our Education section)
Upside contracts outpaced the downside by about 11,000 to 2,900, a reflection of the session's bullish sentiment. Total volume in the name was twice its daily average.
Disclosure: I own UAL calls.
(A version of this post appeared on InsideOptions Pro yesterday.)
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