AMR – AMR Corp. – Call options on AMR Corp., the parent company of American Airlines, are in high demand with shares of the underlying stock trading up as much as 9.1% to an intraday high of $7.79. AMR’s shares are currently up 7.00% at $7.64 as of 11:10 am (ET). Near-term bullish options investors scooped up 3,900 calls at the June $8.0 strike for an average premium of $0.24 each. Call buyers at this strike price profit if AMR’s shares rally above the average breakeven price of $8.24 by expiration day next month. Optimism spread to the July $8.0 strike where it looks like some 4,000 calls were picked up at an average premium of $0.48 per contract. Investors long the calls make money if shares of the underlying stock rally 11% from the current value of $7.64 to exceed the average breakeven price of $8.48 by July expiration.
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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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