​BGC’s Woodard: Delta Air Lines Sees Increased Call Activity

Calls on Delta Air Lines were unusually active late Wednesday morning. With the shares at USD49.42, about 94,000 call contracts traded in the space of a minute on PHLX and CBOE. About 75,000 of those were in September calls struck at 50, 55, and 70. Based on market quotes before the trades and open interest, the customer bought the September 55 calls 30,000 times for USD3.40 to open and sold the 70 calls 45,000 times for USD0.525 to open, for a net premium outlay of about USD7.8mm.