Delta Air Lines Options Traders Betting Stock Will Continue Flying Higher

Delta Air Lines, Inc. DAL shares moved higher on Tuesday after Evercore ISI upgraded the stock from In-Line to Outperform and raised its price target from $40 to $47.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Delta traded at more than 3x average daily call volume on Tuesday. There were 3x more calls than puts on the stock.

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There were buyers of 23,102 of the March weekly 40.5-calls at an average price of $0.17 per contract, Khouw mentioned.

The trader expects Delta’s stock to continue to fly higher.

• Delta pilots recently approved a new deal that provides a 34% pay boost over a four-year agreement, setting a potential example as other U.S. carriers and their pilots’ unions pursue similar contract negotiations. 
• Delta said the agreement, which runs through December 2026, would position its 15,000 pilots to enjoy competitive compensation and work-rule headways.

Price Action: Delta Air Lines shares gained 1.6% to close at $39.07 on Tuesday.

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