United Continental Holdings, Inc. (UAL) is a Chicago based airline corporation that provides both passenger and freight transportation services under the United Airlines brand. At the time of this post (1:00PM CST), UAL is currently trading at 68.15, down 1.76% on the session. The stock is currently well within the upper portion of its 52 week trading range of 36.65-74.52, and has remained in a notably strong uptrend since mid-October, after testing and holding the 40.00 support level on a daily chart.
Although the stock is lower today it has made a large swing off of its lows of the day. UAL traded as low as $65.74 this morning. Earlier this morning a trader bought 2,272 UAL Feb 70 calls for $1.65. Later in the session another trader bought 1,000 of these same calls for $3.03 as the stock rallied higher. If a trader would have taken the first order tht came across the tape they would have been able to net huge profits in these calls. Even though the markets are volatile unusual options activity still provides opportunity.
Trade: A Trader bought 2,272 UAL Feb 70 calls for $1.65
Risk: $165 per 1 lot
Reward: Unlimtied
Breakeven: $71.65
Andrew Keene
KeeneOnTheMarket.com
