Southwest Airlines and United Continental drew unusual put activity yesterday.
LUV rose 0.55 percent to close at $9.07, in the middle of its recent range. UAL was up 0.5 percent to $18.29 after matchin its 2012 lows last week.
In LUV, optionMONSTER's systems show that 9,875 September 8 puts were bought for $0.09 against open interest of 767 contracts. Within two minutes, a block of 69,125 shares traded for $9.05, which exactly equals out the delta of the options in what appears to be an overall long volatility play.
UAL's activity began about five minutes later. First a block of 9,533 September 16 puts changed hands, but that trade was broken and replaced with a block of 4,658. Those were bought for the ask price of $0.25 in volume that was also above open interest, indicating new activity.
Our systems detected some large blocks of stock trading in UAL as well, so this too may have been a long volatility play, with the options bought against shares.
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