The equity is on track for its best day since April
United Airlines Holdings Inc (NASDAQ:UAL) will report third-quarter earnings after the close tomorrow, July 17. Shares are in rally mode ahead of the event, last seen up 5.1% to trade at $46.60, as they pace their best day since April and look to snap a four-day losing streak. The equity is bouncing off the 200-day moving average, and sports a 13% year-to-date lead.
United Airlines stock finished five of its past eight post-earnings sessions lower, including a 17.4% drop in April. The security averaged a 7.9% swing regardless of direction over the last two years, but this time around the options pits are pricing in a larger move of 10.8%.
Options activity is already ramping up. So far today, 44,000 calls have exchanged hands — double the intraday average volume — compared to just 25,000 puts. The most popular contract is the July 50 call.
This bullishness has been prevalent in the options pits lately, per UAL’s s 10-day call/put volume ratio of 5.64 over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 96% of annual readings.