Put Spreads Sold on Continental (CAL)

Shares of Continental Airlines CAL are higher on the session by 3.98%, currently trading at $23.91. The stock has been trading largely higher over the past six months, though trading has been extremely volatile. Currently, the stock is trading above both the 50-day and 200-day moving averages. Put trading is exploding in the name, with over 29,000 puts traded on the name versus 4,000 calls. This stock typically does not trade more than 8,000 option per day, including both calls and puts, so you can understand that this is significant volume. There were several trades in the name today. First, the July $20 put was sold 6,500 times, near the offer, on open interest of 16,494 contracts; this was a closing transaction. Second, the August $20/18 put spread was sold 5,000 times; volume exceeded open interest on both strikes. And finally, the September $20/18 put spread was sold 5,000 times; volume exceeded open interest on both these strikes as well. Both of the put spreads traded for net credits. This is all-in-all bullish for CAL. The seller of the put spreads is looking for the stock to remain above $20 for at least the next three months. Continental Airlines, Inc. is a United States air carrier engaged in the business of transporting passengers, cargo and mail. The company has two segments: mainline and regional. The mainline segment consists of flights to cities using larger jets, while the regional segment consists of flights with a capacity of 79 or fewer seats.