Delta Air Lines, Inc (DAL)
One long-term bullish player is taking advantage of the pullback in the price of the underlying stock by picking up a Bull Call Spread in the June 2011 contract. It appears that a like-minded optimist purchased the same call spread on Delta Air Lines during trading on Tuesday.
- The trader picked up roughly 3,000 calls at the June 2011 $15 strike for an average premium of $0.91 each
- Sold about the same number of calls at the higher June 2011 $20 strike at an average premium of $0.16 a-pop. Net premium paid to initiate the spread amounts to $0.75 per contract
Thus, the investor is poised to profit should shares in Delta Air Lines jump 24.1% over the current price of $12.69 to surpass the average breakeven point at $15.75 by expiration day in June. Maximum potential profits of $4.25 per contract are available to the trader if Delta's shares surge 57.6% to $20.00 before the options expire next year.