LCC – US Airways Group, Inc. – Options investors are building up bullish positions on US Airways Group today with shares of the underlying stock soaring 9.15% higher to $8.82 by 11:30 am (ET). LCC’s shares jumped after the airline reported its passenger revenue per available seat mile surged 22% in June. Traders anticipating US Airways’ shares will continue to rally flocked to the August contract to purchase call options on the stock. Bulls bought approximately 8,600 calls at the August $10 strike for an average premium of $0.44 apiece. Investors profit if LCC’s shares climb 18.4% from the current price of $8.82 to trade above the average breakeven point at $10.44 by August expiration day. It looks some options traders expecting to see LCC’s shares rally sharply during the current session got ahead of the game and started purchasing August $10 strike calls during Tuesday’s session. First-mover advantages of buying the calls yesterday are clear as investors paid an average premium of $0.33 apiece for the same contracts.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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