A large trader apparently believes that Delta Air Lines will keep flying even after a rally of more than 40 percent in the last month.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 7,500 February 47 calls for $2 and the sale of 5,000 December 40 calls for $4.75 Volume was below open interest in the Decembers, which suggests an existing bullish position was rolled forward in time and higher in price.
Long calls lock in the price where investors can buy shares, ensuring they won’t miss a rally. Their cheap cost also helps manage risk because only the price of the options can be lost in a selloff.
— Option Monster