Delta Air Lines reports earnings next week, and the bulls are getting on board early.
optionMONSTER’s Heat Seeker program detected the purchase of more than 12,000 June 34 calls for $1.24 to $1.26 yesterday. The volume was more than 5 times the previous open interest in the strike, indicating that new positions were initiated.
Long calls lock in the price where a stock can be purchased, letting investors cheaply position for a rally. That way they can get long at a fraction of the cost of owning shares and enjoy major leverage in a rally, but the contracts could expire worthless if the shares stall or decline.
— Option Monster