Call Buyers Bet Delta Will Fly Again

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.

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